Banking Code of Practice – Business groups
The submission to the Australian Banking Association (ABA) in response to the consultation paper titled ‘Business groups and the Banking Code’ was prepared by the Financial Services Committee of the Business Law Section of the Law Council of Australia (Committee).
The Committee is broadly supportive of the changes to the definition of ‘small business’ suggested in the report of the independent review of the definition of ‘small business’ conducted by Pottinger (Pottinger Review) and set out in the Consultation Paper.
In particular, the Committee agrees with the suggestion that all entities under common control as a single group should be considered on an aggregate basis when determining whether the entity is a ‘small business’ under the Code.
The Committee also generally agrees with the preliminary conclusion put forward in the Consultation Paper that a ‘bright line’ approach based on ‘deemed control’ is preferable to an approach based on practical control.
You can read the full submission below.