Banking Act 1959
View history note
Hide history notePt IIAA repealed by No 68 of 2023, s 3 and Sch 1 item 107, effective 15 March 2024.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.
(Repealed by No 68 of 2023)
S 37EB repealed by No 68 of 2023, s 3 and Sch 1 item 107, effective 15 March 2024. S 37EB formerly read:
SECTION 37EB Minimum amount of variable remuneration to be deferred
(1)
The amount of an accountable person
'
s
variable remuneration
that is required to be deferred under subparagraph 37E(1)(a)(ii) is as follows:
Minimum amount of variable remuneration to be deferred
Item
If the accountable person is:
... the amount is:
1
The Chief Executive Officer of a large ADI
The lesser of:
(a)
60% of the Chief Executive Officer
'
s variable remuneration for the financial year (the
relevant financial year
) in which the decision was made granting the variable remuneration; or
(b)
40% of the Chief Executive Officer
'
s total remuneration for the relevant financial year.
2
An accountable person of:
The lesser of:
(a)
a large ADI; or
(a)
40% of the accountable person
'
s variable remuneration for the relevant financial year; or
(b)
a subsidiary of a large ADI;
other than the Chief Executive Officer of a large ADI
(b)
20% of the accountable person
'
s total remuneration for the relevant financial year.
3
An accountable person of:
The lesser of:
(a)
a medium ADI; or
(a)
40% of the accountable person
'
s variable remuneration for the relevant financial year; or
(b)
a subsidiary of a medium ADI
(b)
20% of the accountable person
'
s total remuneration for the relevant financial year.
4
An accountable person of:
The lesser of:
(a)
a small ADI; or
(a)
40% of the accountable person
'
s variable remuneration for the relevant financial year; or
(b)
a subsidiary of a small ADI
(b)
10% of the accountable person
'
s total remuneration for the relevant financial year.
(2)
For the purposes of this section, the value of variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, that has been deferred is taken to be:
(a) the value worked out, for the accountable person, in the way determined under subsection (3) or (4); or
(b) if no such determination applies in relation to the accountable person - what would have been the value of that remuneration if it had instead been paid to the person at the time the decision to grant it was made.
(3)
APRA may, by written notice given to an ADI or to a subsidiary of an ADI, determine the way to work out, for the purposes of this section, the value of variable remuneration of accountable persons of the ADI or subsidiary.
(4)
APRA may, by legislative instrument, determine the way to work out, for the purposes of this section, the value of variable remuneration of:
(a) accountable persons of an ADI included in a specified class of ADIs; or
(b) accountable persons of a subsidiary of an ADI included in a specified class of subsidiaries of ADIs.
S 37EB 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.
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