{"id":"F2021L00666","name":"Banking exemption No. 1 of 2021","slug":"banking-exemption-no-1-of-2021","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":101851,"registerId":"commonwealth-F2021L00666-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Interpretation","sectionType":"part","heading":"Interpretation","content":"## Interpretation\n\nIn this determination:\n\nAPRA means the Australian Prudential Regulation Authority.\n\nperson in accordance with section 2C of the Acts Interpretation Act 1901, includes a body corporate as well as an individual.\n\nNote 1 This determination is a legislative instrument (see subsection 11(6) of the Act).\n\nNote 2 Under subsection 11(3) of the Act, a person is guilty of an offence if the person does or fails to do an act and doing or failing to do that act results in a contravention of a condition to which a determination under section 11 is subject (being a determination that is in force and that applies to the person). The penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914 in the case of a body corporate, a penalty not exceeding 1,000 penalty units. By virtue of subsection 11(3A) of the Act, an offence against subsection 11(3) is an indictable offence. Under subsection 11(3B) of the Act, if a person commits an offence against subsection 11(3), the person is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the person committing the offence continue (including the day of conviction for any such offence or any later day).","sortOrder":0},{"sectionNumber":"Schedule - the class of persons to whom ","sectionType":"part","heading":"Schedule - the class of persons to whom this determination applies","content":"# Schedule - the class of persons to whom this determination applies\n\n    Section 7 of the Banking Act 1959 does not apply to a person who is a controlling entity of a fund in the list below, in relation to the activities of the fund; and\n\n    2. Section 8 of the Banking Act 1959 does not apply to a fund that is a body corporate, or a body corporate that is a controlling entity of a fund, in the list below, in relation to the activities of the fund:\n\n    Anglican Community Fund (Inc) (previously known as Anglican Deposit Fund Perth (Inc))\n    Anglican Development Fund – Gippsland\n    Anglican Development Fund (Diocese of Melbourne)\n    Anglican Development Fund (Diocese of Tasmania)\n    Anglican Development Fund Diocese of Bathurst\n    Anglican Financial Services (ANFIN) (Diocese of Brisbane)\n    Anglican Funds – South Australia\n    Anglican Investment and Development Fund\n    Anglican Managed Investments Fund Diocese of Bathurst\n    Anglican Savings and Development Fund Diocese of Newcastle\n    Archdiocese of Adelaide – Catholic Development Fund\n    Archdiocese of Brisbane – Archdiocesan Development Fund (or The Corporation of the Trustees of the Roman Catholic Archdiocese of Brisbane)\n    Archdiocese of Canberra and Goulburn – Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Canberra and Goulburn (ACT) & (NSW))\n    Archdiocese of Hobart – Catholic Development Fund\n    Archdiocese of Melbourne – Catholic Development Fund\n    Archdiocese of Perth – Catholic Development Fund\n    Archdiocese of Sydney – Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Sydney)\n    Armidale Diocesan Investment Group\n    Assemblies of God in Australia Ltd\n    Baptist Financial Services Australia Limited\n    Catholic Development Fund Diocese of Port Pirie\n    CDF Community Fund","sortOrder":1},{"sectionNumber":"Definitions","sectionType":"part","heading":"Definitions","content":"## Definitions\n\nIn this Schedule:\n\ncontrolling entity means a person or body corporate who or which is a trustee of, or otherwise concerned in the management of, a fund.","sortOrder":2},{"sectionNumber":"Schedule of conditions","sectionType":"part","heading":"Schedule of conditions","content":"# Schedule of conditions\n\n    The Fund must be and continue to be:\n\n    (a) recognised at law as being formed for religious and charitable purposes stated in a trust deed, ordinance or other foundation document governing the Fund (Fund constitution);\n    (b) limited to the purposes stated in the Fund constitution; and\n    (c) operated not-for-profit.\n\n    2. The Fund’s retail products must have the sole or dominant intention of furthering the religious and charitable purposes of the Fund.\n\n    3. A copy of the Fund constitution setting out the Fund’s religious and charitable purposes must be available for inspection on request by APRA.\n\n    4. Where a Fund offers, issues or sells a retail product to a retail investor:\n    (a) the retail product must have a minimum term or call period of 31 days; and\n    (b) subject to Condition 6, the retail investor must not be able to redeem any funds for 31 days from the date they are invested in the retail product.\n\n    5. When money held in a retail product that is issued or sold by a Fund to a retail investor reaches its 31 day maturity, the Fund must:","sortOrder":3}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The determination narrows the practical reach of sections 7 and 8 of the Banking Act for the listed entities by exempting specified funds and their controlling entities from those sections in relation to fund activities. In place of full application of the Banking Act, the listed funds operate under instrument-specific conditions (fund constitution, not-for-profit requirement, 31‑day retail-product rules) and supervisory checks by APRA (Schedule, Conditions 1–4)."},"complexity_factors":["Targeted exemptions from core Banking Act provisions (sections 7 and 8) require careful cross-referencing to the Act.","Long, specific list of named funds and controlling entities increases administrative complexity for identification and coverage.","Conditions attach ongoing compliance obligations (fund constitution, not-for-profit operation, purpose-limitation) that require factual verification by APRA (Schedule, Conditions 1–3).","Retail-product rules impose operational constraints (31‑day minimum term / redemption delay) affecting product design and liquidity (Schedule, Condition 4).","Definitions rely on external statutory meaning (retail investor as per section 761G of the Corporations Act) and internal definitions (affiliate, controlling entity), creating interpretive interplay.","Criminal offence and penalty framework referenced in instrument notes (penalties, daily continuing offences) increases legal risk for non-compliance (Notes under Interpretation).","Scope and exclusions (e.g. affiliates excluded from 'retail investor') create edge cases requiring legal interpretation and record-keeping.","APRA’s inspection power (require constitution on request) introduces discretionary supervisory activity and compliance burden."],"plain_english_summary":"This instrument removes (exempts) specified religious and charitable funds and their controlling entities from sections 7 and 8 of the Banking Act 1959 for the funds’ activities. It applies to named church and charity funds and subjects them to conditions (for example, a 31‑day minimum term for retail products) and APRA inspection of fund constitutions (Schedule, Conditions 1–4). Who pays: the listed funds bear compliance costs and enforcement risk; retail investors face a 31‑day liquidity restriction (Condition 4)."},"kimi_summary":{"content_quality":"rejected","complexity_score":4,"rejection_reason":"The document is clearly incomplete. Condition 5 cuts off mid-sentence ('the Fund must:'), the Schedule of conditions appears to end prematurely (conditions 6-14 referenced but not shown), and there is duplicated content (Definitions sections appear twice). This appears to be a fragment or corrupted extract rather than the complete legislative instrument.","scope_assessment":{"changed":false,"description":"This appears to be a standard APRA exemption instrument under section 11 of the Banking Act 1959. The scope aligns with the original intent of that provision — allowing the prudential regulator to exempt specific classes of persons from banking licence requirements where appropriate safeguards exist. The religious/charitable focus and 31-day maturity restrictions are consistent with historical treatment of denominational development funds."},"complexity_factors":["Multiple nested definitions ('controlling entity' defined twice, 'affiliate' has 7 sub-clauses)","Cross-references to external statutes: Banking Act 1959, Acts Interpretation Act 1901, Corporations Act 2001, Crimes Act 1914","Conditional logic in conditions 4-6 (minimum terms, redemption restrictions, maturity rules)","Dual application structure: exempts both 'controlling entities' (Section 7) and the funds themselves (Section 8)","Penalty provisions reference multiple subsections across different Acts creating compliance complexity","Specific list of 22 named entities requiring manual verification for applicability"],"plain_english_summary":"This APRA determination exempts certain Anglican, Catholic and other religious/charitable development funds from needing a full banking licence to take public investments, subject to conditions. It requires the funds to be not‑for‑profit, limit products to religious/charitable purposes, impose a 31‑day retail withdrawal lock‑in, provide founding documents on request, and restrict who counts as a retail investor. Breach is a criminal offence (up to 1,000 penalty units). The published instrument appears incomplete (Condition 5 cuts off)."}},"importantCases":[],"_links":{"self":"/api/acts/banking-exemption-no-1-of-2021","history":"/api/acts/banking-exemption-no-1-of-2021/history","analysis":"/api/acts/banking-exemption-no-1-of-2021/analysis","conflicts":"/api/acts/banking-exemption-no-1-of-2021/conflicts","importantCases":"/api/acts/banking-exemption-no-1-of-2021/important-cases","documents":"/api/acts/banking-exemption-no-1-of-2021/documents"}}