Commonwealth Consolidated Acts Commonwealth Consolidated ActsDefinitions
(1) In this Act, unless the contrary intention appears:
"account-holder" means an entity (as defined in section 960-100 of the Income Tax Assessment Act 1997 ) that has (either alone or jointly with another entity) an account or covered financial product with an ADI.
"action that is likely to have a detrimental effect on financial system stability in New Zealand" includes an action that prevents or interferes with an outsourcing arrangement.
"ADI" is short for authorised deposit-taking institution.
"ADI statutory manager" has the meaning given by subsection 13A(2).
"administrator of an ADI's business" means an administrator appointed under subsection 13A(1) to take control of an ADI's business.
"APRA" means the Australian Prudential Regulation Authority.
"APRA member" has the same meaning as in the Australian Prudential Regulation Authority Act 1998 .
"APRA Special Account" has the same meaning as in the Australian Prudential Regulation Authority Act 1998 .
"APRA staff member" has the same meaning as in the Australian Prudential Regulation Authority Act 1998 .
"ASIC" means the Australian Securities and Investments Commission.
"Australia" includes the Territories.
"authorised deposit-taking institution" means a body corporate in relation to which an authority under subsection 9(3) is in force.
"authorised NOHC" means a body corporate:
(a) in relation to which an authority under subsection 11AA(2) is in force; and
(b) that is a NOHC of an ADI or ADIs.
(a) a business that consists of banking within the meaning of paragraph 51(xiii) of the Constitution; or
(b) a business that is carried on by a corporation to which paragraph 51(xx) of the Constitution applies and that consists, to any extent, of:
(i) both taking money on deposit (otherwise than as part‑payment for identified goods or services) and making advances of money; or
(ii) other financial activities prescribed by the regulations for the purposes of this definition.
"business day" means a day that is not a Saturday, a Sunday or a public holiday or bank holiday in the place concerned.
"civil penalty provision" : a subsection of this Act (or a section of this Act that is not divided into subsections) is a civil penalty provision if:
(a) the words "civil penalty" and one or more amounts in penalty units are set out at the foot of the subsection (or section); or
(b) another provision of this Act specifies that the subsection (or section) is a civil penalty provision.
Note: Schedule 2 deals with contraventions of civil penalty provisions, and treats people who are involved in various ways in such a contravention as if they had contravened the provision concerned.
"covered financial product" has the meaning given by subsection (8).
"declaration time" for an ADI means the time the ADI becomes a declared ADI.
"declared ADI" means an ADI specified in a declaration under section 16AD as an ADI in relation to which Subdivision C of Division 2AA of Part II applies.
"external administrator" means any of the following:
(a) a liquidator or provisional liquidator;
(b) a receiver, manager, managing controller, receiver and manager or other controller (other than an ADI statutory manager);
(c) a voluntary administrator or administrator of a deed of a company arrangement or a scheme manager.
Expressions used in this definition have the same meanings as they have in the Corporations Act 2001 .
"Finance Minister" means the Minister who administers the Financial Management and Accountability Act 1997 .
"Financial Claims Scheme Special Account" has the same meaning as in the Australian Prudential Regulation Authority Act 1998 .
"Financial System Stability Special Account" means the Financial System Stability Special Account established by section 70E.
"foreign ADI" means a body corporate that:
(a) is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and
(b) is authorised to carry on banking business in a foreign country; and
(c) has been granted an authority under section 9 to carry on banking business in Australia.
"industry support contract" means a contract under which emergency financial support is to be provided by parties to the contract to any ADI that is a party to the contract if a specified event occurs. The contract may also deal with matters associated with the provision of the financial support.
"insolvent" , in relation to a body corporate, means that the body corporate is not able to pay all its debts as and when they become due and payable.
(a) the net credit balance , at a time, of an account means the excess of the balance of the account in credit in favour of the account‑holder at that time over the amount (if any) of fees, charges and duties that are identified under the agreement under which the account is kept and are payable by the account‑holder to the ADI at that time; and
(b) the net credit balance , at a time, of a covered financial product that is not an account means the amount owed to the account‑holder at that time under the terms of the agreement under which the covered financial product is kept.
"New Zealand registered bank" means a registered bank, as defined in section 2 of the Reserve Bank of New Zealand Act 1989 of New Zealand, that carries on a business in New Zealand.
"NOHC" is short for non-operating holding company.
"NOHC authority" means an authority under subsection 11AA(2).
"non-operating holding company" means, in relation to a body corporate, a body corporate:
(a) of which the first body corporate is a subsidiary; and
(b) that does not carry on a business (other than a business consisting of the ownership or control of other bodies corporate); and
(c) that is incorporated in Australia.
"outsourcing arrangement" means an arrangement for the business of a New Zealand registered bank, or functions relating to such business, to be carried on by an entity other than the bank.
"penalty unit" has the meaning given by section 4AA of the Crimes Act 1914 .
"personal information" has the same meaning as in the Privacy Act 1988 .
"prescribed New Zealand authority" means the following:
(a) the Reserve Bank of New Zealand;
(b) an authority of the government of New Zealand that:
(i) has statutory responsibilities relating to prudential regulation or financial system stability; and
(ii) is prescribed by the regulations for the purposes of this definition.
"protected account" has the meaning given by subsections (4), (5), (6) and (7).
"prudential matters" means matters relating to:
(a) the conduct by an ADI, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, of any part of its or their affairs in such a way as:
(i) to keep the ADI, NOHC, group or member or members of the group in a sound financial position; or
(ii) not to cause or promote instability in the Australian financial system; or
(iii) not to cause or promote instability in the New Zealand financial system; or
(b) the conduct by an ADI, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, of its or their affairs with integrity, prudence and professional skill.
"prudential requirement regulation" means a regulation under section 11A.
"prudential standard" means a standard under section 11AF.
"relevant group of bodies corporate" has the meaning given by subsection 5(3).
section 9 authority means an authority under subsection 9(3).
"senior manager" of an ADI or an authorised NOHC or the Australian operations of a foreign ADI means a person who has or exercises any of the senior management responsibilities ( within the meaning of the prudential standards) for the ADI or NOHC or for the Australian operations of the foreign ADI, as the case may be.
"subsidiary" has the meaning given by subsection (2).
"the Reserve Bank" means the Reserve Bank of Australia.
"ultimate termination of control" has the meaning given by subsection 13C(1).
(2) For the purposes of this Act, the question whether a body corporate is a subsidiary of another body corporate is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001 .
Relevant group of bodies corporate
(3) For the purposes of this Act:
(a) an ADI and its subsidiaries together constitute a relevant group of bodies corporate ; and
(b) an authorised NOHC and its subsidiaries together also constitute a relevant group of bodies corporate .
(4) Subject to subsections (5), (6) and (7), a protected account is an account or covered financial product that is kept by an account‑holder (whether alone or jointly with one or more other account‑holders) with an ADI and either:
(a) is an account that is prescribed by the regulations for the purposes of this paragraph; or
(b) is an account, or covered financial product, that is kept under an agreement between the account‑holder and the ADI requiring the ADI to pay the account‑holder, on demand by the account‑holder or at a time agreed by them, the net credit balance of the account or covered financial product at the time of the demand or the agreed time (as appropriate).
Note: Paragraph (a)--the regulations may prescribe the account by reference to a class of accounts: see subsection 13(3) of the Legislative Instruments Act 2003 .
(5) An account is not a protected account on and after 12 October 2011 unless:
(a) it is recorded in Australian currency; or
(b) it is kept with an ADI that is a declared ADI on 12 October 2011.
(6) A covered financial product that is kept with an ADI and is not an account is not a protected account if APRA applies under section 14F on or after 12 October 2011 for an order that the ADI be wound up.
(7) An account or covered financial product is not a protected account if the account or covered financial product is prescribed by the regulations for the purposes of this subsection.
Note: The regulations may prescribe the account or covered financial product by reference to a class of accounts or financial products: see subsection 13(3) of the Legislative Instruments Act 2003 .
(8) The Minister may declare that a specified financial product is a covered financial product .
Note: The declaration may specify the product by reference to a class of financial products: see subsection 13(3) of the Legislative Instruments Act 2003 .
(9) A declaration made under subsection (8), or an amendment of the declaration, is a legislative instrument, but neither section 42 (disallowance) nor Part 6 (sunsetting) of the Legislative Instruments Act 2003 applies to the declaration or amendment.
(10) The declaration or amendment takes effect from the time it is made, despite subsections 12(1) and (2) of the Legislative Instruments Act 2003 .
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