TITLE: Australian Prudential Regulation Authority Finalises Banking Act Section 66 Instruments Following Consultation
BODY:
On September 17, 2025, the Australian Prudential Regulation Authority (APRA) released its response to a consultation on minor proposals relating to section 66 of the Banking Act 1959 (the Banking Act). APRA finalised the Banking (restricted word or expression) determination No 1 of 2025 – credit co-operative, along with publishing its consultation response letter and non-confidential submissions received during the consultation period.
The consultation, which APRA launched on June 18, 2025, sought feedback on a set of minor proposals for instruments relating to section 66 of the Banking Act. The consultation period closed on August 15, 2025. Two submissions were received during the consultation: one from the Customer Owned Banking Association and another from the Australian Financial Markets Association, both submitted in August 2025.
Section 66 of the Banking Act establishes exemptions from banking authorisation requirements for certain entities, including registered financial corporations (RFCs) and credit co-operatives, provided they meet specified conditions. The finalised determination addresses restricted words or expressions that credit co-operatives may use, ensuring compliance with Banking Act requirements. Additionally, APRA finalised a banking exemption relating to foreign securities.
These instruments form part of APRA's ongoing framework governing Banking Act exemptions and section 66 guidelines. The finalised determination and related documentation are now available on APRA's website. Entities subject to these instruments, including credit co-operatives and other exempt banking entities, should review the finalised determination to ensure continued compliance with their exemption conditions.
REFERENCES:
Australian Prudential Regulation Authority. Consultation Response – Minor proposals on Banking Act 1959 Section 66 Instruments. September 17, 2025. https://www.apra.gov.au/banking-act-exemptions-and-section-66-guidelines
Australian Prudential Regulation Authority. Banking (restricted word or expression) determination No 1 of 2025 – credit co-operative. September 12, 2025. https://www.apra.gov.au/banking-act-exemptions-and-section-66-guidelines