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How We Are Regulated

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Credit unions, mutual banks and building societies are Authorised Deposit-taking Institutions (ADIs) and are subject to the strongest regulatory framework in the financial sector.

All ADIs are subject to close supervision by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959. All ADIs – banks, building societies and credit unions are subject to the same, strict, legally-enforceable prudential standards on capital, liquidity, risk management and governance.

Deposits of up to $250,000 with credit unions, mutual banks and building socieities were covered on a permanent basis by the Government guarantee from 1 February 2012.

In addition to their licence to carry out banking business, all credit unions, mutual banks and building societies hold an Australian Financial Services Licence (AFSL) and are regulated by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. AFSL holders are subject to a range of licensing, conduct and disclosure obligations.

Credit unions, mutual banks and building societies are also subject to regulatory obligations under a range of laws, including:

  • consumer credit law;
  • the Privacy Act 1988;
  • the Anti-Money Laundering and Counter-Terrorism Financing Act 2006;
  • payments system regulation;
  • the ePayments Code; and
  • the Customer Owned Banking Code of Practice.
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Policy Contacts

Luke Lawler
Director - Policy
P: +61 2 8035 8448
M: +61 418 213 025
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