Treasury Laws Amendment (Financial Sector Regulation) Act 2018 (142 of 2018)
Schedule 2 Limited banking licences
Part 1 Authority to carry on banking business for a limited time
Banking Act 1959
5 After section 9C
Insert:
9D Authority to carry on banking business for a limited time
(1) An application under subsection 9(2) may state that the application is for an authority to carry on banking business in Australia for a limited time.
(2) If APRA grants an authority under subsection 9(3) as a result of an application made in accordance with subsection (1) of this section:
(a) the authority must state that it ceases to have effect on a day specified in the authority; and
(b) the authority ceases to have effect at the start of that day (except to the extent, if any, that it is continued in effect under subsection 9A(5A) or section 9F, or extended under section 9E), unless it is revoked earlier.
(3) The day specified in the authority under paragraph (2)(a) must be:
(a) 2 years after the day APRA grants the authority; or
(b) if APRA considers that another day is appropriate - that other day.
(4) Despite subsection 9(6), Part VI does not apply to a decision to refuse an application made in accordance with subsection (1) of this section, or to a decision to specify a particular day in the authority under paragraph (2)(a) of this section.
Application for authority not subject to time limit
(5) A section 9 authority granted to a body corporate as a result of an application made in accordance with subsection (1) does not prevent the body corporate making, under section 9, a further application for an authority that is not subject to a time limit.
(6) If APRA decides to grant such an application, APRA may do so by varying the section 9 authority to remove the time limit that applies to the authority under subsection (2).
9E Authority to carry on banking business in Australia for a limited time - extension
(1) This section applies to a body corporate's section 9 authority if the authority is to cease to have effect on a day (the expiry day ) specified in the authority.
(2) APRA may, at any time before the expiry day, vary the authority to change the expiry day to a later day.
(3) If APRA does so, APRA must:
(a) give written notice to the body corporate; and
(b) ensure that notice that the variation has been made is published in the Gazette.
(4) A failure to comply with subsection (3) does not affect the validity of the variation.
9F Authority to carry on banking business in Australia for a limited time - continuation after expiry
(1) This section applies to a body corporate's section 9 authority if the authority is to cease to have effect on a day (the expiry day ) specified in the authority.
(2) APRA may, at any time before the expiry day, give the body corporate a written notice stating that the authority continues in effect, on and after the expiry day, in relation to a specified matter or specified period for the purposes of:
(a) a specified provision of this Act or the regulations; or
(b) a specified provision of another law of the Commonwealth that is administered by APRA; or
(c) a specified provision of the prudential standards;
and the statement has effect accordingly.