The Australian Prudential Regulation Authority (APRA) today announced that it has obtained interim court orders preventing an unauthorised financial business calling itself and acting like a “bank”.
The interim orders prevent the entity from taking further deposits and freeze the current assets to prevent them being dealt with improperly.
The Federal Court in Melbourne has ordered that David Robert Siminton and associated entities, including the self‑proclaimed Principality of Camside and Terra Nova Cache, be restrained from:
carrying on any banking business in Australia in contravention of the Banking Act 1959;
assuming or using the words “bank”, “banker”, “banking” or any words or phrases of like import in relation to its business;
advertising, representing or stating that he will carry on banking business;
dealing with monies held on account in his name, or in the name of associated parties, other than for limited living expenses.
APRA alleged that Siminton was operating an unauthorised banking operation in contravention of various sections of the Banking Act 1959. This Act prohibits anyone from conducting a banking business without the appropriate authority. It also prohibits the use of words that connote the carrying on of a banking business.
A number of depositors have placed substantial funds with Camside and were promised returns of approximately 50 per cent per annum.
The matter is listed for a further direction hearing in the Federal Court on 10 January 2006.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.
APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre
1300 131 060
