Banking exemption No. 4 of 2014

 

Banking Act 1959

 

 

I, Wayne Byres, a delegate of APRA, under subsection 11(1) of the Banking Act 1959 (the Act), DETERMINE that sections 7 and 8 of the Act do not apply to the class of persons described in the attached Schedule, while this determination continues in force, AND under paragraph 11(2)(c) of the Act, I make this determination subject to the conditions specified in the attached Schedule of conditions.

 

This determination commences on 1 January 2015 and continues in force until 31 December 2015, unless earlier revoked or varied by further determination.

 

 

Dated: 1 December 2014

 

 

[Signed]

 

 

 

Wayne Byres

Chairman

APRA

 

Interpretation 

In this determination

APRA means the Australian Prudential Regulation Authority.

person in accordance with section 22 of the Acts Interpretation Act 1901, includes a body corporate as well as an individual.

Federal Register of Legislative Instruments means the register established under section 20 of the Legislative Instruments Act 2003.

 

Note 1 This determination is a legislative instrument (see subsection 11(6) of the Act).

Note 2 Under subsection 11(3) of the Act, a person is guilty of an offence if the person does or fails to do an act and doing or failing to do that act results in a contravention of a condition to which an order under section 11 is subject (being an order that is in force and that applies to the person). The penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914 in the case of a body corporate, a penalty not exceeding 1,000 penalty units. By virtue of subsection 11(3A) of the Act, an offence against subsection 11(3) is an indictable offence. Under subsection 11(3B) of the Act, if a person commits an offence against subsection 11(3), the person is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the person committing the offence continue (including the day of conviction for any such offence or any later day).

Schedule - the class of persons to whom this determination applies

 

  1. Section 7 of the Banking Act 1959 does not apply to a person who is a controlling entity of a fund in the list below; and

 

2.        Section 8 of the Banking Act 1959 does not apply to a fund that is a body corporate, or a body corporate that is a controlling entity of a fund, in the list below:

 

       Anglican Funds South Australia

       Anglican Community Fund (Inc) (previously known as Anglican Deposit Fund Perth (Inc))

       Anglican Development Fund – Gippsland

       Anglican Development Fund (Diocese of Melbourne)

       Anglican Development Fund (Diocese of Tasmania)

       Anglican Development Fund Diocese of Bathurst

       Anglican Financial Services (ANFIN) (Diocese of Brisbane)

       Anglican Investment and Development Fund

       Anglican Managed Investments Fund Diocese of Bathurst

       Anglican Savings and Development Fund Diocese of Newcastle

       Archdiocese of AdelaideCatholic Development Fund

       Archdiocese of BrisbaneArchdiocesan Development Fund (or The Corporation of the Trustees of the Roman Catholic Archdiocese of Brisbane)

       Archdiocese of Canberra and GoulburnCatholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Canberra and Goulburn (ACT) & (NSW))

       Archdiocese of HobartCatholic Development Fund

       Archdiocese of MelbourneCatholic Development Fund

       Archdiocese of PerthCatholic Development Fund

       Archdiocese of SydneyCatholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Sydney)

       Armidale Diocesan Investment Group

       Assemblies of God in Australia Ltd

       Baptist Financial Services Australia Limited

       Catholic Development Fund Diocese of Port Pirie

       Centenary Development Foundation

       Christian Outreach Centre

       Churches of Christ Building Extension Mutual Fund Incorporated

       Diocesan Development Fund – Anglican Diocese of Bendigo

       Diocesan Development Fund (Diocese of Armidale)

       Diocese of BallaratCatholic Development Fund

       Diocese of BathurstCatholic Development Fund

       Diocese of Broken Bay – Catholic Development Fund (or Trustees of the Roman Catholic Church for the Diocese of Broken Bay)

       Diocese of BunburyCatholic Development Fund

       Diocese of CairnsCatholic Development Fund (or The Roman Catholic Trust Corporation for the Diocese of Cairns)

       Diocese of DarwinDiocesan Development Fund (or Catholic Church of the Diocese of Darwin Property TrustDarwin Diocesan Development Fund)

       Diocese of LismoreDiocesan Investment Fund (or The Trustees of the Roman Catholic Church for the Diocese of Lismore)

       Diocese of MaitlandNewcastleCatholic Development Fund (or The Trustees of Church Property for the Diocese of Newcastle)

       Diocese of ParramattaDiocesan Development Fund

       Diocese of RockhamptonDiocesan Development Fund

       Diocese of Sale – Catholic Development Fund

       Diocese of SandhurstDiocesan Development Fund

       Diocese of ToowoombaDiocesan Development Fund

       Diocese of TownsvilleDiocesan Development Fund

       Diocese of Wagga WaggaDiocesan Provident Fund (or The Trustees of the Roman Catholic Church for the Diocese of Wagga Wagga)

       Diocese of Wollongong – Catholic Development Fund

       EFKS Financial and Investment Services

       Glebe Income Accounts (Anglican Church Diocese of Sydney)

       Lutheran Lay People’s League of Australia Incorporated

       National Spiritual Assembly of the Baha’is of Australia IncorporatedBaha’i Investment Fund

       Riverina Anglican Development Fund

       Stewards’ Foundation of Christian Brethren

       Temple Society Australia

       The Baptist Union of Queensland

       The Churches of Christ Property Trust

       The Corporate Trustees of the Diocese of GraftonGrafton Diocese Investment Fund

       The Properties Corporation of the Churches of Christ

       The Uniting Church in Australia Property Trust (SA)

       The Uniting Church Investment Service

       UCA Funds (incorporating UCA Cash Management Fund Limited, UCA Growth Fund Limited, UCA Funds Management Limited, the Development Fund, The Uniting Church in Australia Property Trust (Victoria) and the Funeral Fund)

       Uniting Church in Australia Synod of Western Australia Uniting Church Investment Fund

       Uniting Financial Services (incorporating The Uniting Church (NSW) Trust Association Limited, The Uniting Church in Australia Property Trust (NSW), the Funeral Fund and the Self– Help Fund)

       Wangaratta Anglican Development Fund

 

Definitions

In this Schedule:

 

controlling entity means a person or body corporate who or which is a trustee of, or otherwise concerned in the management of, a fund.

Schedule of conditions

 

  1. The Fund must be and continue to be:

 

(a)          recognised at law as being formed for religious and charitable purposes stated in a trust deed, ordinance or other foundation document governing the Fund (Fund constitution); and

 

(b)          limited to the purposes stated in the Fund constitution; and

 

(c)          operated not-for-profit.

 

2.        The Fund’s financial products must have the sole or dominant intention of furthering the religious and charitable purposes of the Fund.

 

3.        A copy of the Fund constitution setting out the Fund’s religious and/or charitable purpose/s must be available for inspection on request by APRA.

 

4.        The Fund or its controlling entity must not offer via the Fund:

 

(a)          cheque account facilities unless the account holder is:

 

(i)             a body constituted by or under the authority of a decision of the central governing body of a related religious organisation; or

 

(ii)           a body in relation to which the central governing body of a related religious organisation is empowered to make ordinances or other binding rules; or

 

(iii)         a person acting as a trustee of a trust for or for the use, benefit or purposes of a related religious organisation; or

 

(iv)          an employee of a body mentioned in subparagraphs (i) to (iii) above who receives their stipend or remuneration via an account of the Fund; or

 

(b)          Electronic Funds Transfer at Point Of Sale (EFTPOS) facilities; or

 

(c)          Automatic Teller Machine (ATM) facilities.

 

5.        The Fund or its controlling entity must in all cases ensure that advertising and marketing material of the Fund contains clear and prominent disclosures (the required disclosures) to the effect that:

 

(a)          neither the controlling entity nor the Fund is prudentially supervised by APRA; and

 

(b)          contributions to the Fund do not obtain the benefit of the depositor protection provisions of the Banking Act 1959; and

 

(c)          the Fund is designed for investors who wish to promote the charitable purposes of the Fund.

 

6.        The Fund or its controlling entity may advertise and market the Fund on-line or in print produced by or under the auspices of the controlling entity (or the religious institution that established the Fund). All advertising and marketing material of the Fund must contain the required disclosures outlined in condition 5.