Financial Sector (Transfer and Restructure) Act 1999

State or Territory legislation referred to in paragraph 11(1)(d) must include provision to ensure that, when a certificate of transfer comes into force under Division 3, the receiving body is taken to be the successor in law to the transferring body, to the extent of the transfer. In particular, the legislation must provide that:

assets of the transferring body vest in the receiving body, to the extent of the transfer; and

liabilities of the transferring body become liabilities of the receiving body, to the extent of the transfer; and

the duties, obligations, immunities, rights and privileges applying to the transferring body apply to the receiving body, to the extent of the transfer; and

if there is an approved section 20 statement in relation to the transfer that specifies:

that particular things are to happen or are taken to be the case—those things are taken to happen, or to be the case, in accordance with the statement; or

a mechanism for determining things that are to happen or are taken to be the case—things determined in accordance with that mechanism are taken to happen, or to be the case, as determined in accordance with that mechanism.

To avoid doubt, this section is enacted only for the purposes of paragraph 11(1)(d).

Under that paragraph, in order to make a voluntary transfer approval under section 11 where both the transferring body and the receiving body are established in a State or Territory, APRA needs to consider whether legislation satisfying the requirements of this section has been enacted. However, APRA is not prevented from making such a voluntary transfer approval if such legislation has not been enacted (see subsection 11(1A)).