Australia's largest stock trading and investment forum Australia's #1 stock forum

SP1 southern cross payments ltd

0.00%

$1.07

ADI on the back burner, page-2

First 2 Last

Share
Profile

Follow
Gaptrade1

2,026 Posts.

376

08/04/20

12:48

Post #: 43949078
Share

Originally posted by jlo2012: ↑

Not that I thought the ADI was getting rubber stamped any time soon but this is hot off the presses:

7 April 2020
TO: ALL LICENCE APPLICANTS
COVID-19: APRA’S APPROACH TO LICENSING

This letter is to inform you about a material update in relation to your company’s application for an Australian Prudential Regulation Authority (APRA) licence.

The global COVID-19 virus has led to a fundamental change in the economic and social environment in Australia and globally. In this current environment, APRA will temporarily suspend the issuance of new APRA licences, except in the rare case that the granting of a licence is necessary for APRA to carry out its mandate.

Financial institutions, particularly those that take customer deposits, look after superannuation funds or issue insurance, occupy a unique position of trust. The financial safety of these institutions is key to the financial stability and well-being of the community and, as a result, these institutions are subject to higher standards than many sectors of the economy. This includes higher entry standards. The process of granting an APRA licence is intended to help ensure that a new entrant will be able to honour the financial promises it makes under all reasonable circumstances.

In licensing new entrants to the prudentially-regulated segments of the financial system, APRA aims to achieve an appropriate balance between financial safety and other important considerations to the community – efficiency, competition, contestability and competitive neutrality. In doing this, APRA is also asked to promote financial system stability in Australia.

Experience has shown that it is challenging for new entrants to succeed even under normal economic conditions, which is why APRA does not consider it prudent to license APRA-regulated entities at this time.

As the operating environment stabilises, APRA will keep its approach under review and advise current applicants when the granting of licences will restart. However, APRA expects this temporary hold could last at least six months and delay APRA licences by at least this timeframe.During this time, APRA will continue to assess current licence applications so the delay on launching when the hold is lifted is minimised.

APRA recognises the importance of keeping you informed while we navigate the next few months. If you wish to discuss the content of this letter, please let your case officer know and they will arrange a teleconference.

Yours sincerely

Melisande Waterford
General Manager, Regulatory Affairs and Licensing

Expand

So this letter was sent to all Licence Applicants how did you get a copy.

ISX Price at posting: $1.07 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

A junior miner unlocking high-grade potential in British Columbia

Building value through discovery in Mexico’s silver heartland

Trump chides Powell as Goldman call for calm. The RBA must be nervous

AII

Inside the depths of Panasqueira: A legacy carved in rock

Listen: HotCopper Wire Podcast 016 – FY25 ended up not so bad... but Trump unpause is coming

First 2 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

ADI on the back burner, page-2

Top Stories

A junior miner unlocking high-grade potential in British Columbia

Building value through discovery in Mexico’s silver heartland

Trump chides Powell as Goldman call for calm. The RBA must be nervous

Inside the depths of Panasqueira: A legacy carved in rock

Listen: HotCopper Wire Podcast 016 – FY25 ended up not so bad... but Trump unpause is coming

Featured News