Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 (10 of 2018)

Schedule 1   Amendment of the Banking Act 1959

Part 1   Main amendments

Banking Act 1959

14   After section 9

Insert:

9AA Conditions on an authority

(1) APRA may, at any time, by giving written notice to a body corporate:

(a) impose conditions, or additional conditions, on the body corporate's section 9 authority; or

(b) vary or revoke conditions imposed on the body corporate's section 9 authority.

The conditions must relate to prudential matters.

(2) A condition may be expressed to have effect despite anything in the prudential standards or the regulations.

(3) Without limiting the conditions that APRA may impose on an authority, APRA may make the authority conditional on another body corporate, of which the body corporate is a subsidiary, being an authorised NOHC.

(4) If APRA imposes, varies or revokes the conditions on a body corporate's section 9 authority, APRA must:

(a) give written notice to the body corporate; and

(b) ensure that notice that the action has been taken is published in the Gazette.

(5) The taking of an action is not invalid merely because of a failure to comply with subsection (4).

(6) Part VI applies to the following decisions made under this section:

(a) a decision to impose conditions, or additional conditions, on a body corporate's section 9 authority;

(b) a decision to vary conditions imposed on a body corporate's section 9 authority.

9AB Breach of authority conditions

(1) A body corporate commits an offence if:

(a) the body corporate does an act or fails to do an act; and

(b) doing the act or failing to do the act results in a contravention of a condition of the body corporate's section 9 authority; and

(c) there is no determination in force under section 11 that this subsection does not apply to the body corporate.

Penalty: 300 penalty units.

(2) If an individual:

(a) commits an offence against subsection (1) because of Part 2.4 of the Criminal Code; or

(b) commits an offence under Part 2.4 of the Criminal Code in relation to an offence against subsection (1);

he or she is punishable, on conviction, by a fine not exceeding 60 penalty units.

(3) An offence against this section is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.