Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The 15 per cent control threshold in the Financial Sector (Shareholdings) Act 1998 is based on the concept of voting power. However a person with less than 15 per cent voting power may be declared to have practical control over a financial sector company, for example if the company's directors are accustomed or under an obligation to act in accordance with that person's wishes.

The FSSA does not impose a blanket prohibition on a person controlling a financial sector company. However it does require the person to obtain the approval of the Treasurer (or APRA, where it exercises the relevant delegation). Approval may be granted if it is deemed consistent with the national interest. Prudential considerations are a key factor in determining the national interest in these circumstances.