Macquarie in regulatory talks with APRA
Macquarie Bank has revealed it is currently in discussions with the Australian Prudential Regulation Authority with a view to changing the application of some banking regulations so it can grow its non-banking business.
The bank’s chairman, David Clarke, told the annual general meeting the bank was examining the establishment of a non-operating holding company that would own both banking and non-banking businesses as part of a solution to be negotiated with APRA.
He told the meeting that a significant portion of Macquarie’s business was not strictly banking in nature but that currently commercial banking regulations did not readily accommodate growth in non-banking business.
“Thus, we are currently discussing solutions with APRA,” Clarke said.
“Existing Australian regulations allow corporate groups containing bank and non-banking activities to structure themselves such that, subject to agreement with APRA, non-banking activities are not subject to banking regulations,” he said.
“We are therefore examining the establishment of a non-operating holding company which would own both banking and non-banking businesses.”
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
