Banking Act 1959 (Cth)

Banking Act 1959 No. 6, 1959 Compilation No. 68 Compilation date: 21 February 2025 Includes amendments: Act No. 14, 2025 About this compilation This compilation This is a compilation of the Banking Act 1959 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part I—Preliminary 1 Short title 2 Commencement 2A Main objects of this Act 4 Repeal 5 Interpretation 6 Application of Act 6A Cessation of application of Act to Territory 6B Application of Criminal Code Part II—Provisions relating to the carrying on of banking business Division 1—Authority to carry on banking business 7 Person other than a body corporate must not carry on banking business 8 Only the Reserve Bank and bodies corporate that are ADIs may carry on banking business 9 Authority to carry on banking business 9AA Conditions on an authority 9AB Breach of authority conditions 9A Revocation of authority etc. 9B Bodies that cease to exist or change their names 9C Publication of list of ADIs 9D Authority to carry on banking business for a limited time 9E Authority to carry on banking business in Australia for a limited time—extension 9F Authority to carry on banking business in Australia for a limited time—continuation after expiry 10 APRA to be supplied with certain documents 11 APRA may determine that provisions of this Act do not apply Division 1AA—Authority to be a NOHC of an ADI 11AA Authority to be a NOHC 11AAA Conditions on an authority 11AAB Breach of authority conditions 11AB Revocation of authority etc. 11AC Bodies that cease to exist or change their names 11AD Publication of list of NOHCs 11AE APRA may give notice to ensure that ADI has an authorised NOHC Division 1A—Prudential supervision and monitoring of ADIs and authorised NOHCs Subdivision A—Prudential supervision and monitoring of ADIs and authorised NOHCs generally 11AF APRA may make prudential standards for ADIs and authorised NOHCs 11AG Obligation to comply with the prudential standards 11A Prudential requirements may also be prescribed by the regulations 11B APRA to monitor prudential matters 11C Division not to limit operation of other provisions Subdivision B—Conversion and write‑off provisions 11CAA Definitions 11CAB Conversion and write‑off provisions 11CAC Conversion or write‑off etc. not grounds for denial of obligations Division 1BA—APRA's power to issue directions Subdivision A—Directions other than to enforce certified industry support contracts 11CA APRA may give directions in certain circumstances Subdivision B—Directions to enforce certified industry support contracts 11CB APRA may certify an industry support contract 11CC APRA may direct parties to an industry support contract to comply with the contract Subdivision C—General provisions relating to all directions 11CD Direction not grounds for denial of obligations 11CE Supply of information about issue and revocation of directions 11CG Non‑compliance with a direction Subdivision D—Secrecy and disclosure provisions relating to all directions 11CH APRA may determine that a direction is covered by secrecy provision 11CI Secrecy relating to directions 11CJ Disclosure of publicly available information 11CK Disclosure allowed by APRA 11CL Disclosure to legal representative for purpose of seeking legal advice 11CM Disclosure allowed by APRA Act secrecy provision 11CN Disclosure in circumstances set out in the regulations 11CO Disclosure for purpose 11CP Exceptions operate independently Division 1B—Provisions relating to certain ADIs 11E Limited application of Division 2 etc. to foreign ADIs 11EA APRA's power to apply for foreign ADI to be wound up 11F Assets of foreign ADIs Division 2—Protection of depositors Subdivision A—General provisions relating to depositor protection 12 APRA to protect depositors 13 ADI to supply information to APRA 13A Consequences of inability or failure of ADI etc. to meet certain requirements 13B Investigators—ADI must provide information and facilities 13BA Start of control of body corporate's business by Banking Act statutory manager 13C Banking Act statutory managers—termination of control Subdivision AA—Recapitalisation directions by APRA 13D Who this Subdivision applies to 13E Recapitalisation direction by APRA 13F Additional contents of a recapitalisation direction 13G Compliance with a recapitalisation direction 13H APRA must obtain expert's report on the fair value of shares etc. 13J Determination of the fair value of shares by an expert 13K Determination of the fair value of rights by an expert 13L Ascertaining the fair value of other capital instruments 13M Contravention of certain provisions does not affect the validity of recapitalisation direction etc. 13N Recapitalisation direction not grounds for denial of obligations 13P Supply of information about issue and revocation of recapitalisation directions 13Q Non‑compliance with a recapitalisation direction 13R Exceptions to Part IV of the Competition and Consumer Act 2010 Subdivision B—Provisions dealing with control of a body corporate's business by a Banking Act statutory manager 14A Banking Act statutory manager's powers and functions 14AAA Safeguards on exercise of Banking Act statutory manager's powers and functions 14AA Banking Act statutory manager's additional powers to facilitate recapitalisation 14AB Considering report before acting under section 14AA 14AC Act under section 14AA not ground for denial of obligations 14AD APRA may require a person to give information etc. for the purposes of this Division 14B Administrator in control—additional powers to recommend action by APRA 14C Banking Act statutory manager's liabilities and duties 14CA Transaction by Banking Act statutory manager not voidable under section 588FE of the Corporations Act 2001 14D Administrator in control—additional duties 14DAA Administrator in control—additional duties where action may affect financial system stability in Australia 14DA Administrator in control—additional duties where action may affect financial system stability in New Zealand 14E Termination of administrator's appointment 15 Effect on directors of Banking Act statutory manager taking control of a body corporate's business 15A Effect on external administrator of Banking Act statutory manager taking control of a body corporate's business 15B Moratorium—effect of Banking Act statutory management on court and tribunal proceedings 15BA Moratorium—effect of Banking Act statutory management on enforcement process regarding property 15BB Moratorium—effect of Banking Act statutory management on disposal of property 15BC Moratorium—restrictions on exercise of third party property rights 15BD Moratorium—effect of Banking Act statutory management on supply of essential services 15BE Moratorium—effect of Banking Act statutory management on annual general meeting 15C Certain circumstances not grounds for denial of obligations 15D Application of other provisions 16 Costs of statutory management 16A APRA must report to Treasurer and publish information about statutory management 16AA Exceptions to Part IV of the Competition and Consumer Act 2010 Subdivision C—APRA's powers to apply for ADI to be wound up 16AAA APRA's powers to apply for ADI to be wound up Division 2AA—Financial claims scheme for account‑holders with insolvent ADIs Subdivision A—Preliminary 16AB Purpose of this Division 16AC APRA's functions relating to this Division Subdivision B—Declaration of ADI 16AD Declaration that Subdivision C applies in relation to ADI 16AE Advice and information for decision on making declaration Subdivision C—Payment of account‑holders with declared ADI 16AF Payment of account‑holders with declared ADI 16AG Limit on payments to account‑holder with declared ADI 16AH Payment 16AHA Giving information about payments in a financial year 16AI Substitution of APRA for account‑holder as ADI's creditor 16AIA APRA may make transferred liabilities determination where transfer of business 16AIB Payment amounts under transferred liabilities determination 16AIC Consequences of transferred liabilities determination once certificate of transfer issued Subdivision D—Administration 16AJ Requiring assistance 16AK Obtaining information relevant to determining and paying entitlements 16AL Enforcing requirement for assistance or information 16AM Recovery of overpayments 16AN APRA may delegate functions and powers under this Division 16AO APRA's costs of administration Subdivision E—Account‑holder's claims against ADI remaining after entitlement 16AP When this Subdivision applies 16AQ Liquidator may admit debt or claim without normal proof 16AR How liquidator must pay distributions to account‑holder 16AS APRA may disclose relevant personal information to liquidator Subdivision F—Disclosure of information relating to new accounts 16AT APRA or liquidator to disclose information to ADI Subdivision G—Exceptions to Part IV of the Competition and Consumer Act 2010 16AU Exceptions to Part IV of the Competition and Consumer Act 2010 Division 2A—Auditors of ADIs and authorised NOHCs and their subsidiaries 16AV Appointed auditor's functions and duties 16B Auditors to give information to APRA on request 16BA Requirement for auditors to give information about ADIs 16C Auditor may provide information to APRA 16D Appointed auditor must notify APRA of attempts to unduly influence etc. the appointed auditor 16E Giving false or misleading information to auditor Division 2B—Removal of auditors of ADIs 17 APRA may remove an auditor of an ADI 18 Referring matters to professional associations for auditors Division 2C—Enforceable undertakings 18A Enforceable undertakings Division 3—Governance 19 Disqualified persons must not act for ADIs or authorised NOHCs 20 Who is a disqualified person? 21 Court power of disqualification 22 Court power to revoke or vary a disqualification etc. 22A Privilege against exposure to penalty—disqualification under section 21 23 APRA may remove a director or senior manager of an ADI or authorised NOHC Division 3A—Covered bonds 24 Guide to this Division 25 Application of Division 26 Covered bonds 27 Arrangements involving several ADIs 28 Restrictions on issuing covered bonds—8% rule 29 Restrictions on issuing covered bonds—APRA directions 30 Cover pool monitors 31 Assets that may be in cover pools 31A Maintenance of cover pools 31B Protection of certain contractual rights 31C Powers and obligations of Banking Act statutory manager or external administrator 31D Prudential standards—treatment of assets and liabilities 31E Prudential standards for covered bonds 31F APRA may direct covered bond special purpose vehicles to return certain assets Division 4—Mobilization of foreign currency 32 Interpretation 33 Transfer of foreign currency to Reserve Bank 34 Payment for transferred foreign currency 35 Sale of foreign currency by Reserve Bank Division 5—Advances 36 Advance policy Part IIA—ADI mergers (operation of State and Territory laws) 38A Operation of certain State and Territory laws relating to ADI mergers Part IIB—Provisions relating to the non‑ADI lenders Division 1—Main concepts 38B Meaning of non‑ADI lender and Part IIB provision of finance Division 2—Non‑ADI lender rules 38C APRA may make non‑ADI lender rules for non‑ADI lenders 38D Non‑ADI lender rules revoked after 2 years 38E Variation and revocation of non‑ADI lender rules 38F Notification and consultation regarding non‑ADI lender rules 38G Which non‑ADI lender rules, etc., are legislative instruments 38H Review of decisions relating to non‑ADI lender rules 38J Division not to limit operation of other provisions Division 3—APRA's power to issue directions 38K APRA may give directions in certain circumstances 38L Non‑compliance with a direction under section 38K Part III—Foreign exchange, foreign investment etc. 39 Power to make regulations 39A Extra‑territorial application of regulations Part IV—Gold 40 Operation of Part 41 Transfer of gold out of Australia 42 Delivery of gold 43 Vesting of gold delivered 44 Payment for gold 45 Limitation of sale and purchase of gold 46 Limitation on working of gold 47 Application of Part 48 Exemptions Part V—Interest rates 50 Control of interest rates Part VI—Reconsideration and Review of decisions 51A Definitions 51B Reconsideration of decisions 51C Review of decisions 51D Statements to accompany notification of decisions Part VIA—Protections in relation to information 52F Self‑incrimination Part VII—Financial records 60 Keeping of financial records Part VIII—Powers of APRA Division 1—Investigations 61 APRA may conduct investigations 61A Investigator may require production of books etc. 61B Concealing books, accounts or documents relevant to investigation Division 2—Examinations 61C Notice requiring appearance for examination 61D Conduct of examinations 61E Who may be present at examinations 61F Record of examination 61G Offences Division 3—Evidentiary use of certain material 61H Statements made at an examination—proceedings against examinee 61J Statements made at an examination—other proceedings 61K Weight of evidence under section 61J 61L Objection to admission of statements made at examination 61M Copies of, or extracts from, certain books, accounts and documents 61N Report under section 61 61P Exceptions to admissibility of report 61Q Material otherwise admissible Division 4—Information 62 Supply of information Division 5—Miscellaneous 62AA Legal professional privilege 62AB Powers of Court relating to non‑compliance with this Act Part IX—Miscellaneous 62A Notices to APRA 62B Involving APRA in proposed appointment of external administrators of ADIs and NOHCs 62C Involving APRA in applications by liquidator 62D Application by APRA for directions 62E APRA may request information from liquidator 63 Restructuring of ADIs 64 Conditions on consent to restructure an ADI 65 ADIs etc. may be directed to comply with Act 65A Injunctions 65B Civil penalties 66 Restriction on use of certain words and expressions 66AA Use of the word bank by ADIs 66A Restriction on use of expressions authorised deposit‑taking institution and ADI 67 Restriction on establishment or maintenance of representative offices of overseas banks 68 Bank holidays 69 Unclaimed moneys 69A Disclosure of information relating to unclaimed moneys 69B Powers about money of depositors who have died 69BA Institution of offence proceedings no bar to winding up 69C Conduct of directors, employees and agents 69D Disclosure of information received under Act prohibited in certain circumstances 69E Compensation for acquisition of property 69F Severability 70A Protection from liability—general 70AA Protection from liability—directions and secrecy 70AB Protection from liability—provisions do not limit each other 70B Act has effect despite the Corporations Act 70C Authorising contracts etc. for protecting depositors' interests and financial system stability 70D Borrowing funds for payments under authorised contracts etc. 70E Financial System Stability Special Account 70F Credits to the Account 70G Purposes of the Account 70H Debits to reflect reduced amounts specified in authorisations 71 Regulations Schedule 1—State and Territory laws relating to ADI mergers Schedule 2—Civil penalties Part 1—Contravention of a civil penalty provision 1 Federal Court may order person to pay pecuniary penalty for contravening civil penalty provision 2 Contravening a civil penalty provision is not an offence 3 Persons involved in contravening civil penalty provision 4 Recovery of a pecuniary penalty 5 Civil evidence and procedure rules for pecuniary penalty orders Part 2—Civil penalty proceedings and criminal proceedings 6 Civil proceedings after criminal proceedings 7 Criminal proceedings during civil proceedings 8 Criminal proceedings after civil proceedings 9 Evidence given in proceedings for penalty not admissible in criminal proceedings Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to regulate Banking, to make provision for the Protection of the Currency and of the Public Credit of the Commonwealth, and for other purposes Part I—Preliminary 1 Short title This Act may be cited as the Banking Act 1959. 2 Commencement Except as otherwise provided by this Act, this Act shall come into operation on the day on which the Reserve Bank Act 1959 comes into operation. 2A Main objects of this Act (1) The main objects of this Act are: (a) to protect the interests of depositors in ADIs in ways that are consistent with the continued development of a viable, competitive and innovative banking industry; and (b) to promote financial system stability in Australia. (2) This Act, and the prudential standards and non‑ADI lender rules determined by APRA under this Act, achieve this mainly by: (a) restricting who can carry on banking business in Australia; and (b) providing for the prudential supervision of ADIs by APRA, by APRA determining prudential standards or taking other action to ensure prudent management of ADIs; and (c) providing for APRA to manage or respond to circumstances in which the ability of an ADI to meet its obligations may be threatened; and (d) providing for certain account‑holders to be paid amounts where the financial claims scheme has been declared to apply in relation to an ADI; and (f) for the purposes of paragraph (1)(b)—providing rules in relation to the provision of certain kinds of finance by non‑ADI lenders. (3) It is intended that APRA, in taking actions to address risks to financial system stability in Australia, may consider specific sources of systemic risks, whether geographic, sectoral or otherwise. (4) This section does not apply to the following: (a) Divisions 4 (Mobilization of foreign currency) and 5 (Advances) of Part II; (b) Parts III (Foreign exchange, foreign investment etc.), IV (Gold) and V (Interest rates); (c) any other provision of this Act, to the extent that it relates to any of the provisions mentioned in paragraph (a) or (b). 4 Repeal The following Acts are repealed: Banking Act 1945; Banking Act 1953. 5 Interpretation Definitions (1) In this Act, unless the contrary intention appears: account‑holder means an entity (as defined in section 960‑100 of the Income Tax Assessment Act 1997) that holds in its name, or keeps in its name, (either alone or jointly with another entity) an account or covered financial product with an ADI. action that is likely to have a detrimental effect on financial system stability in New Zealand includes an action that prevents or interferes with an outsourcing arrangement. ADI is short for authorised deposit‑taking institution. administrator, of a body corporate's business, means an administrator appointed under subsection 13A(1) to take control of the body corporate's business. advance includes loan. appointed auditor means an auditor appointed in accordance with the prudential standards. approved form means a form approved, in writing, by APRA. APRA means the Australian Prudential Regulation Authority. APRA member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. APRA Special Account has the same meaning as in the Australian Prudential Regulation Authority Act 1998. APRA staff member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. ASIC means the Australian Securities and Investments Commission. Australia includes the Territories. Australian business assets and liabilities, of a foreign ADI, has the meaning given by subsection 11E(3). authorised deposit‑taking institution means a body corporate in relation to which an authority under subsection 9(3) is in force. authorised NOHC means a body corporate: (a) in relation to which an authority under subsection 11AA(2) is in force; and (b) that is a NOHC of an ADI or ADIs. Banking Act statutory manager has the meaning given by subsection 13A(2). banking business means: (a) a business that consists of banking within the meaning of paragraph 51(xiii) of the Constitution; or (b) a business that is carried on by a corporation to which paragraph 51(xx) of the Constitution applies and that consists, to any extent, of: (i) both taking money on deposit (otherwise than as part‑payment for identified goods or services) and making advances of money; or (ii) other financial activities prescribed by the regulations for the purposes of this definition. business day means a day that is not a Saturday, a Sunday or a public holiday or bank holiday in the place concerned. civil penalty provision: a subsection of this Act (or a section of this Act that is not divided into subsections) is a civil penalty provision if: (a) the words "civil penalty" and one or more amounts in penalty units are set out at the foot of the subsection (or section); or (b) another provision of this Act specifies that the subsection (or section) is a civil penalty provision. Note: Schedule 2 deals with contraventions of civil penalty provisions, and treats people who are involved in various ways in such a contravention as if they had contravened the provision concerned. covered bond has the meaning given by subsection 26(1). covered bond liabilities has the meaning given by subsections 26(4) and (5). covered bond special purpose vehicle has the meaning given by subsection 26(1). covered financial product has the meaning given by subsection (8). cover pool has the meaning given by subsection 26(3). declaration time for an ADI means the time the ADI becomes a declared ADI. declared ADI means an ADI specified in a declaration under section 16AD as an ADI in relation to which Subdivision C of Division 2AA of Part II applies. direction under this Act means a direction under any of the following provisions: (a) section 11CA; (b) section 11CC; (c) section 13E; (d) section 17; (e) section 23; (f) section 29; (g) section 31F. external administrator means any of the following: (a) a liquidator; (b) a receiver, manager, managing controller, receiver and manager or other controller (other than a Banking Act statutory manager); (c) a voluntary administrator or administrator of a deed of a company arrangement or a scheme manager. Expressions used in this definition have the same meanings as they have in the Corporations Act 2001. Finance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013. Financial Claims Scheme Special Account has the same meaning as in the Australian Prudential Regulation Authority Act 1998. financial market has the same meaning as in Chapter 7 of the Corporations Act 2001. Financial System Stability Special Account means the Financial System Stability Special Account established by section 70E. foreign ADI means a body corporate that: (a) is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and (b) is authorised to carry on banking business in a foreign country; and (c) has been granted an authority under section 9 to carry on banking business in Australia. holding company, of a body corporate, means another body corporate of which the first body corporate is a subsidiary. industry support contract means a contract under which emergency financial support is to be provided by parties to the contract to any ADI that is a party to the contract if a specified event occurs. The contract may also deal with matters associated with the provision of the financial support. insolvent, in relation to a body corporate, means that the body corporate is not able to pay all its debts as and when they become due and payable. investigator means a person APRA appoints under subsection 13(4), 13A(1) or 61(1). issuing ADI has the meaning given by subsection 26(6). lawyer means a duly qualified legal practitioner and, in relation to a person, means such a practitioner acting for the person. liquidator includes a provisional liquidator. listing rules has the same meaning as in the Corporations Act 2001. net credit balance: (a) the net credit balance, at a time, of an account means the excess of the balance of the account in credit in favour of the account‑holder at that time over the amount (if any) of fees, charges and duties that are identified under the agreement under which the account is kept and are payable by the account‑holder to the ADI at that time; and (b) the net credit balance, at a time, of a covered financial product that is not an account means the amount owed to the account‑holder at that time under the terms of the agreement under which the covered financial product is kept. New Zealand registered bank means a registered bank, as defined in section 2 of the Reserve Bank of New Zealand Act 1989 of New Zealand, that carries on a business in New Zealand. NOHC is short for non‑operating holding company. NOHC authority means an authority under subsection 11AA(2). NOHC/NOHC subsidiary has the meaning given by subsection 13D(5). non‑ADI lender has the meaning given by section 38B. non‑ADI lender rule means a rule under section 38C. non‑operating holding company means, in relation to a body corporate, a body corporate: (a) of which the first body corporate is a subsidiary; and (b) that does not carry on a business (other than a business consisting of the ownership or control of other bodies corporate); and (c) that is incorporated in Australia. outsourcing arrangement means an arrangement for the business of a New Zealand registered bank, or functions relating to such business, to be carried on by an entity other than the bank. Part IIB provision of finance has the meaning given by section 38B. personal information has the same meaning as in the Privacy Act 1988. prescribed New Zealand authority means the following: (a) the Reserve Bank of New Zealand; (b) an authority of the government of New Zealand that: (i) has statutory responsibilities relating to prudential regulation or financial system stability; and (ii) is prescribed by the regulations for the purposes of this definition. protected account has the meaning given by subsections (4), (5), (6) and (7). prudential matters means matters relating to: (a) the conduct of any part of the affairs of, or the structuring or organising of, an ADI, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, in such a way as: (i) to keep the ADI, NOHC, group or member or members of the group in a sound financial position; or (ii) to facilitate resolution of the ADI, NOHC, group or member or members of the group; or (iii) to protect the interests of depositors of any ADI; or (iv) not to cause or promote instability in the Australian financial system; or (v) not to cause or promote instability in the New Zealand financial system; or (b) the conduct of any part of the affairs of an ADI, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, with integrity, prudence and professional skill. prudential requirement regulation means a regulation under section 11A. prudential standard means a standard under section 11AF. recapitalisation direction means a direction given by APRA under subsection 13E(1) or (1B). related body corporate, in relation to a body corporate, means a body corporate that is related to the first‑mentioned body, as determined in accordance with subsection 5(2A). relevant group of bodies corporate has the meaning given by subsection 5(3). resolution means the process by which APRA or other relevant persons manage or respond to an entity: (a) being unable to meet its obligations; or (b) being considered likely to be unable, or being considered likely to become unable, to meet its obligations; or (c) suspending payment, or being considered likely to suspend payment; including through the exercise of powers and functions under this Act or another law. section 9 authority means an authority under subsection 9(3). senior manager of an ADI or an authorised NOHC or the Australian operations of a foreign ADI means a person who has or exercises any of the senior management responsibilities (within the meaning of the prudential standards) for the ADI or NOHC or for the Australian operations of the foreign ADI, as the case may be. subsidiary has the meaning given by subsection (2). the Reserve Bank means the Reserve Bank of Australia. transferred liabilities determination means a determination under subsection 16AIA(1). ultimate termination of control has the meaning given by subsection 13C(1). Subsidiary (2) For the purposes of this Act, the question whether a body corporate is a subsidiary of another body corporate is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001. Related bodies corporate (2A) For the purposes of this Act, the question whether a body corporate is related to another body corporate is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001. Relevant group of bodies corporate (3) For the purposes of this Act: (a) an ADI and its subsidiaries together constitute a relevant group of bodies corporate; and (b) an authorised NOHC and its subsidiaries together also constitute a relevant group of bodies corporate. Protected account (4) Subject to subsections (5), (6) and (7), a protected account is an account or covered financial product that is kept by an account‑holder (whether alone or jointly with one or more other account‑holders) with an ADI and either: (a) is an account that is prescribed by the regulations for the purposes of this paragraph; or (b) is an account, or covered financial product, that is kept under an agreement between the account‑holder and the ADI requiring the ADI to pay the account‑holder, on demand by the account‑holder or at a time agreed by them, the net credit balance of the account or covered financial product at the time of the demand or the agreed time (as appropriate). Note: Paragraph (a)—the regulations may prescribe the account by reference to a class of accounts: see subsection 13(3) of the Legislation Act 2003. (5) An account is not a protected account on and after 12 October 2011 unless: (a) it is recorded in Australian currency; or (b) it is kept with an ADI that is a declared ADI on 12 October 2011. (6) A covered financial product that is kept with an ADI and is not an account is not a protected account if APRA applies under section 16AAA for an order that the ADI be wound up. (7) An account or covered financial product is not a protected account if the account or covered financial product is prescribed by the regulations for the purposes of this subsection. Note: The regulations may prescribe the account or covered financial product by reference to a class of accounts or financial products: see subsection 13(3) of the Legislation Act 2003. Covered financial product (8) The Minister may declare that a specified financial product is a covered financial product. Note: The declaration may specify the product by reference to a class of financial products: see subsection 13(3) of the Legislation Act 2003