House of Representatives
Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)Glossary
The following abbreviations and acronyms are used throughout this explanatory memorandum.
| Abbreviation | Definition |
| ADI | Authorised deposit-taking institution |
| Administrator | A person appointed by APRA to take control of an entity as statutory manager under section 13A of the Banking Act, new section 62ZOA of the Insurance Act or new section 179AA of the Life Insurance Act, where APRA itself does not take over control of the entity under those sections. |
| APRA | Australian Prudential Regulation Authority |
| APRA Act | Australian Prudential Regulation Authority Act 1998 |
| AT1 | Additional Tier 1 |
| ATO | Australian Tax Office |
| Authorised NOHC | A non-operating holding company that is authorised either under the Banking Act 1959 or Insurance Act 1973, or registered under the Life Insurance Act 1995 |
| Banking Act | Banking Act 1959 |
| BCBS | Basel Committee on Banking Supervision |
| Bill | Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 |
| CET1 | Common Equity Tier 1 |
| Commencement time | The day the Bill receives the Royal Assent |
| CFR | Council of Financial Regulators |
| Corporations Act | Corporations Act 2001 |
| Court | Federal Court of Australia |
| FCS | Financial Claims Scheme |
| FSB | Financial Stability Board |
| Foreign ADI | A foreign ADI as defined in subsection 5(1) of the Banking Act 1959 |
| Abbreviation | Definition |
| Foreign general insurer | A foreign general insurer as defined in subsection 3(1) of the Insurance Act 1973 |
| Foreign insurer | A foreign general insurer or foreign life insurer |
| Foreign life insurer | An eligible foreign life insurance company as defined in the Schedule Dictionary of the Life Insurance Act 1995 |
| Foreign regulated entity | A foreign ADI, foreign general insurer, or foreign life insurer |
| FSCODA | Financial Sector (Collection of Data) Act 2001 |
| Holding company | In relation to a body corporate, refers to another body corporate of which the first body corporate is a subsidiary |
| IADI | International Association of Deposit Insurers |
| IAIS | International Association of Insurance Supervisors |
| Industry Acts | Refers collectively to the Banking Act 1959, Insurance Act 1973, and Life Insurance Act 1995 but does not include the Superannuation Industry (Supervision) Act 1993 or the Private Health Insurance (Prudential Supervision) Act 2015. |
| Insurance Act | Insurance Act 1973 |
| Insurer | Refers collectively to general and life insurers |
| Key Attributes | Financial Stability Board, 'Key Attributes of Effective Resolution Regimes for Financial Institutions' (15 October 2014) |
| Life Insurance Act | Life Insurance Act 1995 |
| NOHC | Non-operating holding company |
| PGPA Act | Public Governance, Performance and Accountability Act 2013 |
| Policyholder | Means a 'policyholder' as per the Insurance Act 1973 and a 'policy owner' as per the Life Insurance Act 1995 |
| PSN Act | Payment Systems and Netting Act 1998 |
| Regulated entity | An ADI, general insurer, or life insurer |
| Abbreviation | Definition |
| Relevant group of bodies corporate | A group of bodies corporate comprising a regulated entity and all of its subsidiaries or an authorised NOHC and all of its subsidiaries |
| Statutory manager | Refers to APRA, or an administrator appointed by APRA, when it takes control of an entity under section 13A of the Banking Act, new section 62ZOA of the Insurance Act or new section 179AA of the Life Insurance Act. |
| Target body corporate | A body corporate that is an authorised NOHC, subsidiary of a regulated entity or a subsidiary of an authorised NOHC. |
| Transfer Act | Financial Sector (Business Transfer and Group Restructure) Act 1999 (the Bill amends the title of this Act to the Financial Sector (Transfer and Restructure Act) 1999)) |
| T2 | Tier 2 |
| 2012 Consultation Paper | 'Strengthening APRA's Crisis Management Powers' Consultation Paper (September 2012) |