Commonwealth Numbered Regulations - Explanatory Statements

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BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT) 1992 NO. 302

STATUTORY RULES 1992 No. 302

ISSUED BY THE AUTHORITY OF THE TREASURER

Banks (Shareholdings) Act 1972

Banks (Shareholdings) Regulations (Amendment)

Section 10 of the Banks (Shareholdings) Act 1972 (the Act) generally limits the nominal amount of the voting shares of a bank in which a person (including a corporation), including associates (defined in section 9), may have an interest to 10 per cent, or 15 per cent with the approval of the Treasurer, of the total nominal amount of the voting shares in the bank.

Section 17 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Section 8 defines what may be included as an interest in shares for the purposes of the Act. Paragraph 8(9)(d) provides that there shall be disregarded a prescribed interest of such person, or of persons included in such class of persons as is prescribed. The Banks (Shareholdings) Regulations currently prescribe certain persons and interests in relation to shares in certain banks.

The proposed amendment to the Regulations arises out of the Government's continuing consideration of the AMP/Westpac alliance, and discussions with relevant parties. The effect of the amended Regulation will be to disregard until 15 October 1993 the shareholding interests of AMP and Westpac in other authorised banks as at 30 January 1992, to allow the parties sufficient time to sell down their interests to 10 per cent in an orderly manner.