meta_id 3345704

The Australian Prudential Regulation Authority (APRA) 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 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 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. The update expands the scope of entities eligible for the exemption, streamlining the consent process for foreign issuers accessing Australian wholesale debt markets. Other aspects of the exemption remain unchanged. The updated exemption applies to foreign entities seeking to use restricted terminology in debt securities issuance, removing the need for individual consent applications for a wider range of entities that fall within the expanded class definition. APRA's response to submissions and the final legislative instrument are available on APRA's website. For further information, interested parties may contact APRA on 1300 558 849 or the APRA Media Unit on +61 2 9210 3636.