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Financial Sector (Transfers of Business) Bill 1999

Part 2 Overview of Act

   

8   Overview of Act

             (1)  This Act provides for 2 kinds of transfers of business of regulated bodies:

                     (a)  voluntary transfers (these are transfers under Part 3); and

                     (b)  compulsory transfers (these are transfers under Part 4).

Either kind of transfer may be a partial transfer or a total transfer.

             (2)  A transfer of business of a regulated body is a partial transfer if it relates to some, but not all, of the transferring body’s business (including any business that is not regulated business). It cannot however relate only to business that is not regulated business.

             (3)  A transfer of business of a regulated body is a total transfer if it relates to all of the transferring body’s business (including any business that is not regulated business).

             (4)  For a voluntary transfer of business to take effect, APRA must:

                     (a)  receive an application for the transfer from the regulated bodies concerned (the transferring body and the receiving body ); and

                     (b)  approve the application in writing (the voluntary transfer approval ); and

                     (c)  issue a certificate (the certificate of transfer ) stating that the transfer is to take effect.

The transfer of business takes effect when the certificate of transfer comes into force.

             (5)  For a compulsory transfer of business to take effect, APRA must:

                     (a)  make a determination (the compulsory transfer determination ) that there is to be a transfer of business between the regulated bodies concerned (the transferring body and the receiving body ); and

                     (b)  issue a certificate (the certificate of transfer ) stating that the transfer is to take effect.

The transfer of business takes effect when the certificate of transfer comes into force.

             (6)  Business of regulated bodies may also be transferred otherwise than under this Act, for example in accordance with section 63 of the Banking Act 1959 or Part 9 of the Life Insurance Act 1995 .