ASIC has issued its report on its policy for considering requests from individual credit unions to switch off the demutualisation approval procedure rules.
It has decided that its policy should remain unchanged, except for one refinement.
REP 369 confirms that ASIC will, where the rule permits it to, issue a written notice to cease the effect of all, or any part of, the rules only where a credit union’s circumstances raise potential prudential concerns and the Australian Prudential Regulation Authority (APRA) considers it necessary for a proposed transaction to occur expeditiously.
ASIC will, however, consider allowing the rules to be switched off where the rules are only triggered because a party to a transaction is a former credit union that has been permitted by APRA to become a ‘mutual bank’ under the Banking Act 1959.
