APRA revokes lender’s licence

The Australian Prudential Regulation Authority (APRA) announced today (11 February) that a request from Lutheran Laypeople’s League of Australia to have its lending licence revoked has been granted.

What was previously an Authorised Deposit Taking Institution (ADI), Lutheran Laypeople’s League will now revert to a Religious Charitable Development Fund.

According to APRA, this is described as: “Religious charitable development funds are funds established to borrow and use money for religious and charitable purposes. This fundraising activity meets the definition of banking business under the Banking Act 1959 (Banking Act).”

“These funds have historically been exempt from the requirement to be authorised under the Banking Act provided they meet specified conditions set out in the exemption order. The current exemption order is Banking exemption No. 1 of 2021 which commenced on 24 May 2021,” said APRA.

Under the Banking Act, religious charitable development funds must be and continue to be:

• Recognised at law as being formed for religious and charitable purposes stated in a trust deed, ordinance or other foundation document governing the Fund (Fund constitution)
• Limited to the purposes stated in the Fund constitution
• Operated not-for-profit

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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