Federal Register of Legislation - Australian Government

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This instrument revokes the existing approvals and grants approval to the following: (i) Allianz SE, Allianz BV, Allianz Australia Limited and Allianz Australia Insurance Limited to hold 100% stake in Westpac General Insurance Limited; (ii) Allianz SE, Allianz BV and Allianz Australia Limited to hold 100% stake in Allianz Australia Insurance Limited; (iii) Allianz SE and Allianz BV to hold 100% stake in Allianz Australia Limited; and (iv) Allianz SE to hold 100% in Allianz BV.
Administered by: Treasury
Registered 06 May 2021

 

 

Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% No. 10 of 2021

 

Financial Sector (Shareholdings) Act 1998

 

 

To: Allianz SE, Allianz Europe BV (Allianz BV), Allianz Australia Limited (AAL) ABN 21 000 006 226 and Allianz Australia Insurance Limited (AAIL) ABN 15 000 122 850 (the Applicants).

 

SINCE

 

A.   Allianz SE, Allianz BV and AAL (the Existing Approval Holders) hold the following approvals (the Existing Approvals):

 

a.       On 20 April 1999 Allianz SE was granted approval under subsection 14(1) of the Financial Sector (Shareholdings) Act 1998 (the Act) to hold a 100% stake in AAL, formerly MMI Limited, a financial sector company under the Act;

b.      On 30 December 2009 Allianz BV was granted approval under subsection 14(1) of the Act to hold a 100% stake in AAL and AAIL; and

c.       On 30 December 2009 AAL was granted approval under subsection 14(1) of the Act to hold a 100% stake in AAIL;

 

B.   On 24 March 2021, the Existing Approval Holders requested that the Existing Approvals be revoked from the time, if any, the approvals in C. are granted;

 

C.   On 1 February 2021, the following applications were made to the Treasurer under section 13 of the Act:

 

a.       The Applicants to hold a 100% stake in Westpac General Insurance Limited (WGIL) ABN 99 003 719 319, a financial sector company under the Act;

 

b.      Allianz SE, Allianz BV and AAL to hold a 100% stake in AAIL, a financial sector company under the Act;

 

c.       Allianz SE and Allianz BV to hold 100% stake in AAL, a financial sector


 

 

 

company under the Act;

 

d.      Allianz SE to hold 100% stake in Allianz BV, a financial sector company under the Act; and

 

D.   I am satisfied that it is in the national interest to approve:

 

a.       Allianz SE, Allianz BV, AAL and AAIL to hold 100% stake in WGIL;

b.      Allianz SE, Allianz BV and AAL to hold 100% stake in AAIL;

c.       Allianz SE and Allianz BV to hold 100% stake in AAL; and

d.      Allianz SE to hold 100% in Allianz BV. I, Sharyn Reichstein, a delegate of the Treasurer:

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

 

(b)   under paragraph 14(1)(a) of the Act, APPROVE:

 

(i)        Allianz SE, Allianz BV, AAL and AAIL to hold 100% stake in WGIL;

(ii)      Allianz SE, Allianz BV and AAL to hold 100% stake in AAIL;

(iii)     Allianz SE and Allianz BV to hold 100% stake in AAL; and

(iv)    Allianz SE to hold 100% in Allianz BV.

 

This instrument commences on the date it is made and remains in force indefinitely.

 

Dated: 5 May 2021

 

 

Sharyn Reichstein1 General Manager Insurance Division

 

Interpretation

 

Act means the Financial Sector (Shareholdings) Act 1998.

 

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.

 


1 A delegate of the Treasurer.


 

 

 

Notes

 

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 this instrument will be registered in the Federal Register of Legislation as a notifiable instrument.

 

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.

 

Note 7 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.