Treasury Laws Amendment (Financial Sector Regulation) Act 2018 (142 of 2018)

Schedule 1   Restrictions on shareholdings

Part 1   Amendments

Financial Sector (Shareholdings) Act 1998

33   After section 19

Insert:

19A Flow-on approvals - approval granted in relation to new or recently established financial sector company

100% subsidiaries of holding company

(1) If:

(a) at a particular time, a person holds an approval under paragraph 14(1)(b) to hold a stake in a financial sector company of more than 20%; and

(b) the financial sector company is a holding company of the relevant licensed company for the approval;

there are taken to be in force at that time approvals of the Treasurer, under section 14, for the person to hold the same percentage stake in:

(c) the relevant licensed company; and

(d) each financial sector company that is both:

(i) a 100% subsidiary of the holding company; and

(ii) a holding company of the relevant licensed company.

(2) If, on a particular day, the relevant licensed company for the approval ceases to be a 100% subsidiary of the holding company, the approval that is taken to be in force, because of subsection (1), in relation to that relevant licensed company continues in force until:

(a) the end of 90 days after that day; or

(b) if, during that period of 90 days, the person becomes the holder of another approval under section 14 in relation to the relevant licensed company - that other approval comes into force.

(3) If, on a particular day, a financial sector company that is covered by paragraph (1)(d):

(a) ceases to be a 100% subsidiary of the holding company; or

(b) ceases to be a holding company of the relevant licensed company for the approval;

the approval that is taken to be in force, because of subsection (1), in relation to that financial sector company continues in force until:

(c) the end of 90 days after that day; or

(d) if, during that period of 90 days, the person becomes the holder of another approval under section 14 in relation to the financial sector company - that other approval comes into force.

Officers of company

(4) If, at a particular time, a company (the approval company ) holds an approval under paragraph 14(1)(b) to hold a stake in a financial sector company of more than 20%, there is taken to be in force at that time an approval of the Treasurer, under section 14, for each officer of the approval company to hold the same percentage stake in the financial sector company.