Federal Register of Legislation - Australian Government

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This instrument grants approval to Arch Capital Group Ltd. (Bermuda Public Limited Liability Company) and the other applicants listed in Schedule 1 to hold a stake of more than 20% in Coface SA (France Société Anonyme) and Compagnie Française d’Assurance pour le Commerce Extérieur (France Société Anonyme).
Administered by: Treasury
Registered 27 Jan 2021

 

Approval to hold a stake in a financial sector company of more than 20% - 9 of 2020

Financial Sector (Shareholdings Act) 1998


To: Arch Capital Group Ltd. (Bermuda Public Limited Liability Company) and all the other applicants listed in the attached Schedule 1 (the Applicants).

 

SINCE

 

A.    On 17 April 2020 the Applicants applied to the Treasurer under section 13 of the Act for approval to hold a 29.5% stake in each of the companies listed in the attached Schedule 2 (the Companies) each a financial sector company under the Act;

 

B.    I am satisfied that it is in the national interest to approve the Applicants to hold a 29.5% stake in the Companies.

 

I, John Huijsen, a delegate of the Treasurer under subsection 14(1) of the Act, APPROVE the Applicants to hold a 29.5% stake in the Companies.

 

This instrument commences on the date it is signed and remains in force indefinitely. Dated: 30/12/2020
[Signed]

 

John Huijsen General Manager Insurance Division

 

Interpretation

 

In this Notice

 

Act means the Financial Sector (Shareholdings) Act 1998.

APRA means the Australian Prudential Regulation Authority.

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 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 2 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 3 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 4 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 5 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 on the Federal Register of Legislation.

 

Note 6 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;

 

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.


SCHEDULE 1 - the persons, in addition to Arch Capital Group Ltd. (Bermuda Public Limited Liability Company) who applied for approval:

1.    Arch Reinsurance Ltd. (Bermuda Limited Liability Company)

 

2.    Arch Financial Holdings Europe II Limited (Ireland Holding Company)

 

3.    Arch Financial Holdings Europe IV Limited (Ireland Holding Company)

 

4.    Coface SA (France Société Anonyme)

 

SCHEDULE 2 - the financial sector companies

1.    Coface SA (France Société Anonyme)

 

2.    Compagnie Française d’Assurance pour le Commerce Extérieur (France Société Anonyme)