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BANKING ACT 1959 - SECT 11AF

APRA may make prudential standards for ADIs and authorised NOHCs

             (1)  APRA may, in writing, determine standards in relation to prudential matters to be complied with by:

                     (a)  all ADIs; or

                     (b)  all authorised NOHCs; or

                     (c)  a specified class of ADIs or authorised NOHCs; or

                     (d)  one or more specified ADIs or authorised NOHCs.

          (1A)  A standard may impose different requirements to be complied with in different situations or in respect of different activities.

       (1AA)  Without limiting the prudential matters in relation to which APRA may determine a standard, a standard may require:

                     (a)  each ADI or authorised NOHC; or

                     (b)  each ADI or authorised NOHC included in a specified class of ADIs or authorised NOHCs; or

                     (c)  a specified ADI or authorised NOHC; or

                     (d)  each of 2 or more specified ADIs or authorised NOHCs;

to ensure that its subsidiaries (or particular subsidiaries), or it and its subsidiaries (or particular subsidiaries), collectively satisfy particular requirements in relation to prudential matters.

       (1AB)  Without limiting the prudential matters in relation to which APRA may determine a standard, a standard may provide for matters relating to:

                     (a)  the appointment of auditors; or

                     (b)  the conduct of audits.

             (2)  A standard may provide for APRA to exercise powers and discretions under the standard, including (but not limited to) discretions to approve, impose, adjust or exclude specific prudential requirements in relation to one or more specified ADIs or authorised NOHCs.

             (3)  APRA may, in writing, vary or revoke a standard.

          (3A)  A standard referred to in paragraph (1)(d), or an instrument varying or revoking such a standard, has effect:

                     (a)  from the day on which the standard, variation or revocation is made; or

                     (b)  if the standard, variation or revocation specifies a later day--from that later day.

          (4A)  If APRA determines or varies a standard referred to in paragraph (1)(d) it must, as soon as practicable, give a copy of the standard, or of the variation, to the ADI or authorised NOHC, or to each ADI or authorised NOHC, to which the standard applies. Whenever APRA gives a copy of a standard, or of a variation, to an ADI or authorised NOHC, it must also provide a copy to the Treasurer.

          (5A)  If APRA revokes a standard referred to in paragraph (1)(d) it must, as soon as practicable, give notice of the revocation to the ADI or authorised NOHC, or to each ADI or authorised NOHC, to which the standard applied. Whenever APRA gives a notice of revocation to an ADI or authorised NOHC, it must also provide a copy to the Treasurer.

             (7)  A failure to comply with subsection (4A) or (5A) does not affect the validity of the action concerned.

          (7A)  The following instruments made under this section are not legislative instruments:

                     (a)  a standard referred to in paragraph (1)(d);

                     (b)  an instrument varying or revoking a standard referred to in paragraph (1)(d).

          (7B)  Otherwise, an instrument made under this section is a legislative instrument.

       (7BA)  A standard may provide for a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time, despite:

                     (a)  section 46AA of the Acts Interpretation Act 1901 ; and

                     (b)  section 14 of the Legislation Act 2003 .

          (7C)  Part VI applies to the following decisions under this section:

                     (a)  a decision to determine a standard referred to in paragraph (1)(d);

                     (b)  a decision to vary such a standard.

             (8)  In this section:

"Territory " means a territory to which this Act extends.



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