Religious charitable development funds (the Funds) are funds established by religious organisations for the purpose of seeking investments from the public to help further the funds' religious and charitable goals and objectives. This fundraising activity meets the definition of banking business under the Banking Act 1959 (Banking Act). APRA has exempted Funds from the requirement to be authorised under the Banking Act where specified conditions are met. The current exemption order is Banking exemption No. 1 of 2011.
This follows from the previous exemption, Banking exemption No. 1 of 2006, which expired in June 2011. This new exemption is for a two year period and is effective until June 2013. Funds are subject to substantially the same conditions as the previous exemption. APRA intends to undertake a comprehensive review of the existing exemption before June 2013 and will consult widely with industry and other stakeholders.