The Australian Prudential Regulation Authority (APRA) has released for consultation draft Financial Sector (Shareholdings) Rules 2019 (the Rules).
The Rules prescribe matters in regards to the recent changes to the Financial Sector (Shareholdings) Act 1998 (FSSA). The FSSA was amended by Parliament in 2018 to introduce a new streamlined ‘fit and proper’ test for shareholders of new or recently established authorised deposit-taking institutions, general insurers, and life companies with assets below the relevant threshold.
The Rules proposed by APRA set out the matters that must be considered in determining if a person is ‘fit and proper’ for the purposes of the FSSA; the calculation used to determine if an entity’s assets are under the relevant threshold; and the information to be reported to APRA annually if an application under the ‘fit and proper’ test is approved.
A four week consultation period on the proposed Rules has now commenced, with APRA accepting submissions until Friday 19 April 2019.
Copies of the draft Rules and explanatory material are available at: Financial Sector (Shareholdings) Rules 2019