Federal Register of Legislation - Australian Government

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This instrument revokes existing approval and grants new approval for the Applicants to hold a stake in Sirius International Insurance Corporation and other related companies of more than 20%.
Administered by: Treasury
Registered 06 Jan 2021

 

 

Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% - 6 of 2020

Financial Sector (Shareholdings) Act 1998

 

To: The companies listed in Schedule 1 (the Existing Approval Holders) and the companies listed in Schedule 2 (the Applicants)

 

SINCE

A.      On 29 March 2019, the Existing Approval Holders were granted approval under subsection 14(1) of the Financial Sector (Shareholdings) Act 1998 (the Act) to hold a 100% stake in Sirius International Insurance Corporation ABN 26 764 933 001 (SIIC) and other related companies, each a financial sector company under the Act (the Existing Approval);

B.       On 5 September 2020, the Existing Approval Holders requested that the Existing Approval be revoked;

C.       On 5 September 2020, the Applicants applied to the Treasurer under section 13 of the Act for approval to hold a 100% stake in SIIC and the companies listed in Schedule  3 (the Financial Sector Companies), each a financial sector company under the Act; and

D.      I am satisfied it is in the national interest for the Applicants to hold a 100% stake in SIIC and the Financial Sector Companies,

 

I, Sharyn Reichstein, a delegate of the Treasurer:

(a)                   under subsection 18(3) of the Act, REVOKE the Existing Approval; and

(b)                 under subsection 14(1) of the Act, APPROVE the Applicants to hold a 100% stake in SIIC and the Financial Sector Companies.

 

This instrument commences on the date, if any, that Third Point Reinsurance Ltd (Bermuda) acquires a 100% stake in SIIC and thereafter remains in force indefinitely.

 

Dated 23 December 2020

 

[Signed]

 

Sharyn Reichstein General Manager Insurance Branch 1


 

 

 

Interpretation

In this Notice:

100% subsidiary has the meaning given in section 3 of the Act.

financial sector company has the meaning given in section 3 of the Act.

stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.

unacceptable shareholding situation has the meaning given in section 10 of the Act. Note 1 Under paragraph 16(2)(a) of the Act, the Treasurer may, by written notice given to a person who holds an Approval under section 14, impose one or more conditions or further conditions to which the Approval is subject. Under paragraph 16(2)(b) of the Act, the Treasurer may revoke or vary any conditions

imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s powers under subsection 16(2) of the Act may be exercised on the Treasurer’s own initiative or on application made

to the Treasurer in accordance with the requirements of subsection 16(4) of the Act, by the person who holds the Approval (see subsection 16(3) of the Act).

Note 2 A person who holds an Approval under section 14 of the Act may apply to the Treasurer under subsection 17(1) of the Act, to vary the percentage specified in the Approval.

Note 3 Under subsection 17(6) of the Act, the Treasurer may, on the Treasurer’s own initiative, by written notice given to a person who holds an Approval under section 14, vary the percentage specified in the Approval if the Treasurer is satisfied it is in the national interest to do so.

Note 4 The circumstances in which the Treasurer may revoke a person’s Approval under section 14 are set out in subsection 18(1) of the Act.

Note 5 Section 19 of the Act provides for flow-on approvals. If an Approval has been granted for the holding of a stake in a financial sector company and the financial sector company is a holding company for an authorised deposit-taking institution or an authorised insurance company, then an approval is taken to exist for the holding of a stake of equal value in each financial sector company that is a 100% subsidiary of the

holding company.

Note 6 Under section 14 of the Act, the Treasurer must give written notice of this Approval to the applicant and financial sector company concerned and must publish a copy of this notice in the Gazette.

Note 7 Under section 11 of the Act, a person or 2 or more persons under an arrangement are guilty of an offence if the person(s) acquires shares in a company and the acquisition has the result, in relation to a financial sector company, that:

(i)    an unacceptable shareholding situation comes into existence; or

(ii)    if an unacceptable shareholding situation already exists in relation to the company and in relation to a person – there is an increase in the stake held by the person in the company;

Government Notices Gazette C2019G00448 20/05/2019

and the person(s) was reckless as to whether the acquisition would have that result. A maximum penalty of 400 penalty units applies or by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 2,000 penalty units. By virtue of section 39 of the Act, an offence against section 11 is an indictable offence.

Note 8 Under subsection 32(3) of the Act, if a person has engaged in or is proposing to engage in any conduct in contravention of a condition to which an approval under section 14 is subject, the Federal Court may, on the application of the Treasurer, grant an injunction:

(i)    restraining the person engaging in the conduct; and

(ii)    if in the Court’s opinion, it is desirable to do so, requiring the person to do something.

 

Schedule 1 – the Existing Approval Holders

 

1.    China Minsheng Investment Group Corp. Ltd. (P.R. China)

2.    CMIG International Holding Pte. Ltd. (Singapore)

3.    CM Bermuda Ltd. (Bermuda)

4.    Sirius International Insurance Group, Ltd. (Bermuda)

5.    Sirius International Holdings Ltd. (Bermuda)

6.    Sirius International Group, Ltd. (Bermuda)

7.    Sirius Bermuda Insurance Company Ltd. (Bermuda)


8.    Sirius International UK Holdings Ltd. (UK)

9.        Sirius Group International S.a.r.l. (Luxembourg)

10.     Sirius Insurance Holding Sweden AB (Sweden)

11.     Fund American Holdings AB (Sweden)

 

Note: The place of incorporation of each of the companies in Schedule 1 appears in the brackets after the name of the company.

 

Schedule 2 – the Applicants

1.      Sirius International Insurance Corporation (Sweden)

2.      Fund American Holdings AB (Sweden)

3.      Sirius Insurance Holding Sweden AB (Sweden)

4.      Sirius Group International S. a. r. l. (Luxembourgh)

5.      Sirius International UK Holdings Ltd (United Kingdom)

6.      Sirius Bermuda Insurance Company,Ltd (Bermuda)

7.      Sirius International Group Ltd (Bermuda)

8.      Sirius International Holdings Ltd (Bermuda)

9.      Sirius International Insurance Group, Ltd. (Bermuda)

10.  Third Point Reinsurance Ltd (Bermuda)

11.  CM Bermuda Limited (Bermuda)

12.  CMIG International Holding Pte.Ltd (Singapore)

13.  China Minsheng Investment Group Corp., Ltd (People’s Republic of China)

 

Note: The place of incorporation of each of the companies in Schedule 2 appears in the brackets after the name of the company.

 

Schedule 3 – the Financial Sector Companies in addition to SIIC

1.  Fund American Holdings AB (Sweden)

2.  Sirius Insurance Holding Sweden AB (Sweden)

3.  Sirius Group International S. a. r. l. (Luxembourgh)

4 .Sirius International UK Holdings Ltd (United Kingdom)

5.  Sirius Bermuda Insurance Company,Ltd (Bermuda)

6.  Sirius International Group Ltd (Bermuda)

7.  Sirius International Holdings Ltd (Bermuda)

8.  Sirius International Insurance Group Ltd.(Bermuda)

9.  Third Point Reinsurance Ltd. (Bermuda)

 

Note: The place of incorporation of each of the companies in Schedule 3 appears in the brackets after the name of the company.

Government Notices