The Australian Prudential Regulation Authority (APRA) has released a response to its consultation on minor proposals for instruments relating to section 66 of the Banking Act 1959 (the Banking Act).
Under section 66 of the Banking Act, certain words and expressions are restricted in use within the context of a financial business, such as the use of the word "bank", and words of like import, unless APRA has provided written consent for a person or class of persons to use those words and expressions.
APRA has updated a class exemption that allows foreign entities to use restricted terms when issuing debt securities in wholesale capital markets. The exemption now captures a broader set of foreign entities that commonly seek APRA's consent, reducing administrative burden for these entities. Other aspects of the exemption remain unchanged.
A letter outlining APRA's response to submissions and the final legislative instrument is available at: Banking Act exemptions and section 66 guidelines
