Regulation Impact Statement Updates
Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.
Remaking of sunsetting instrument without significant amendments
Banking exemption No 1 of 2018
On 21 March 2018, the Australian Prudential Regulation Authority (APRA) remade the Banking (Exemption) Order No. 82 in the Banking exemption No 1 of 2018.
The Banking exemption No 1 of 2018 provides a class exemption to enable overseas banks to raise funds in Australia by issuing securities without the need for prior APRA approval. These banks are required to disclose that the banks issuing these securities are not authorised under Banking Act 1959 (the Act), are not supervised by APRA and investments in these securities are not protected by depositor protection provisions or from potential loss due to the failure of these entities as provided through the Financial Claims Scheme in the Act.
Consistent with Government best practice regulation requirements for sunsetting instruments, APRA, after consulting stakeholders, has assessed the overall policy approach in Banking exemption No 1 as operating effectively and efficiently, with minor amendments to clarify the status of foreign corporations, reflect the introduction of the Financial Claims Scheme and accommodate communication practices now used to market and issue securities.