Banking Act 1959

Pt IIAA repealed by No 68 of 2023, s 3 and Sch 1 item 107, effective 15 March 2024.

Pt IIAA inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. No 5 of 2018, s 3 and Sch 1 items 15 - 18 contain the following application provisions:

Part 3 - Application of amendments

15 Requirement to register  
If, immediately before the commencement of Part IIAA of the Banking Act 1959 as amended by this Act, a person held a position, in or relating to an ADI or a subsidiary of an ADI, that causes the person on that commencement to be an accountable person of that ADI or subsidiary, paragraph 37DA(1)(a) of that Act as so amended does not apply in relation to that person until the end of the period of 90 days after that commencement. 16 Deferral of variable remuneration  
(1)
Division 4 of Part IIAA of the Banking Act 1959 as inserted by this Act applies in relation to the variable remuneration of an accountable person only if the decision granting the accountable person the variable remuneration was made on or after 1 January 2019.

(2)
Despite subitem (1), if an accountable person ' s variable remuneration is payable under a contract entered into before the day this Act received the Royal Assent, Division 4 of Part IIAA of the Banking Act 1959 as inserted by this Act does not apply in relation to the variable remuneration until 1 January 2020.

(3)
Despite subitem (1), if:

(a) an accountable person ' s variable remuneration is payable under a contract entered into before the commencement of Part IIAA of the Banking Act 1959 as inserted by this Act; and

(b) apart from this subitem, the application of Division 4 of that Part in relation to the variable remuneration would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph);

that Division does not apply in relation to the variable remuneration to the extent that it would result in such an acquisition.

Note:

Because this subitem prevents Division 4 of Part IIAA of the Banking Act 1959 from giving rise to such an acquisition of property in relation to variable remuneration payable under such a contract, compensation will not be payable under section 69E of that Act.

17 Accountability statements and accountability maps  
(1)
APRA may, by legislative instrument, determine, in relation to accountability statements and accountability maps mentioned in section 37F of the Banking Act 1959 as inserted by this Act, transitional requirements applying during the period (the transition period ) of 18 months after the commencement of Part IIAA of the Banking Act 1959 as so inserted.

(2)
Compliance during the transition period with those transitional requirements, to the extent that they relate to accountability statements, is taken, for the purposes of the Banking Act 1959 , to be compliance with paragraph 37F(1)(a) of that Act as inserted by this Act.

(3)
Compliance during the transition period with those transitional requirements, to the extent that they relate to accountability maps, is taken, for the purposes of the Banking Act 1959 , to be compliance with paragraph 37F(1)(b) of that Act as inserted by this Act.

(4)
This item does not limit the ways paragraph 37F(1)(a) or (b) of the Banking Act 1959 as inserted by this Act may be complied with during the transition period.
18 Application to small and medium ADIs  
(1)
Despite item 15 and subitem 16(1), Part IIAA of the Banking Act 1959 as inserted by this Act applies in relation to the following on and after 1 July 2019:

(a) a medium ADI;

(b) a small ADI;

(c) an accountable person of a medium ADI;

(d) an accountable person of a small ADI.

(2)
Despite subitem (1), if:

(a) an accountable person ' s variable remuneration is payable under a contract entered into before the commencement of Part IIAA of the Banking Act 1959 as inserted by this Act; and

(b) apart from this subitem, the application of Division 4 of that Part in relation to the variable remuneration would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph);

that Division does not apply in relation to the variable remuneration to the extent that it would result in such an acquisition.

Note:

Because this subitem prevents Division 4 of Part IIAA of the Banking Act 1959 from giving rise to such an acquisition of property in relation to variable remuneration payable under such a contract, compensation will not be payable under section 69E of that Act.

(3)
Despite item 17, transitional requirements determined by APRA under that item apply in relation to a medium ADI, or a small ADI, on and after 1 July 2019.

Div 4 repealed by No 68 of 2023, s 3 and Sch 1 item 107, effective 15 March 2024.

Div 4 inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. For application provisions, see note under Pt IIAA heading.

S 37EC repealed by No 68 of 2023, s 3 and Sch 1 item 107, effective 15 March 2024. S 37EC formerly read:

SECTION 37EC Minimum period of deferral  
(1)
The required period under subparagraph 37E(1)(a)(iii) in relation to variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, is:

(a) 4 years; or

(b) a shorter period approved by APRA under subsection (4) in relation to the variable remuneration;

starting on the day after the day on which the decision was made granting the accountable person the variable remuneration.

(2)
However, if, at the end of the period under subsection (1), the ADI or subsidiary considers that the accountable person is likely to have failed to comply with his or her accountability obligations under section 37CA, that period is extended until the day the ADI or subsidiary determines whether he or she has failed to comply.

(3)
An ADI may apply to APRA for APRA to approve a shorter period under subsection (4) in relation to the variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, if the ADI is satisfied that:

(a) based on the information known at the time of the application, the accountable person has complied with his or her accountability obligations under section 37CA; and

(b) it is unlikely that further information will become known, before the end of the 4 year period mentioned in paragraph (1)(a), that indicates that the accountable person did not comply with those obligations.

(4)
APRA may approve a shorter period in relation to the variable remuneration of a person if APRA is satisfied that:

(a) either:

(i) the person is no longer an accountable person of the ADI or subsidiary, because of the person ' s death, serious incapacity, serious disability or serious illness; or

(ii) a circumstance determined under subsection (5) or (6) exists relation to the person; and

(b) the ADI or subsidiary has taken all reasonable steps to satisfy itself of the matters mentioned in paragraphs (3)(a) and (b).

(5)
APRA may, by written notice given to an ADI, determine circumstances for the purposes of subparagraph (4)(a)(ii) in relation to the ADI and/or one or more subsidiaries of the ADI.

(6)
APRA may, by legislative instrument, determine circumstances for the purposes of subparagraph (4)(a)(ii).

S 37EC inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. For application provisions, see note under Pt IIAA heading.