Financing and Money Services (Amendment) Act, 2023

Summary

This Act amends the Financing and Money Services Act, Revised Edition 2020, updating the definitions of controlling interest and significant interest and extending certain approval requirements to persons with a controlling interest, not just a significant interest. It does not itself impose new fees or filing regimes but changes who counts as having influence over a licensee for regulatory purposes.

• Controlling interest redefined: Section 2(1) is amended so that controlling interest now covers a person with more than 50% of voting rights, a person with a significant but sub 50% interest that gives a considerable voting advantage, a person with influence over the licensee without a significant interest, or a person who gives instructions to a director or senior officer that they are accustomed to follow.
• Significant interest redefined: Significant interest is redefined as a holding or interest entitling a person to control 10% or more of voting rights, a 10% or greater share of distributions or surplus assets, or the power to appoint or remove one or more directors.
• Section 9(2)(d) amended: The reference to a significant interest in section 9(2)(d) of the principal Act is expanded to also capture a controlling interest.
• Section 14(3)(b)(i) amended: The reference to a significant interest in section 14(3)(b)(i) of the principal Act is expanded to also capture a controlling interest.
• Commencement: The Act comes into force on a date to be appointed by the Minister by notice published in the Gazette, so it is not automatically effective on passage or gazettal.

Because sections 9 and 14 of the principal Act deal with approval and fitness requirements tied to significant interest holders, licensees and persons acquiring a controlling interest (as newly defined) should expect the same scrutiny that previously applied only to significant interest holders once the amendment is brought into force.

Key obligations

• Persons acquiring or holding a controlling interest (as newly defined) in a licensee under the Financing and Money Services Act become subject to the same approval or disclosure requirements under sections 9(2)(d) and 14(3)(b)(i) that previously applied only to holders of a significant interest, once the Act is brought into force.

Applies to

licensees under the Financing and Money Services Act (money services and financing businesses), persons holding or acquiring a controlling interest or significant interest in such a licensee

Deadlines

• such date as the Minister may by Notice published in the Gazette appoint: Commencement date of the Act, to be fixed later by ministerial notice rather than on passage or gazettal

Related documents

• This document amends Financing and Money Services Act (Revised 2020)