APRA revokes ADI license of neo bank 86 400 Ltd
The Australian Prudential Regulation Authority (APRA) announces that it has revoked 86 400 Ltd’s authorised deposit-taking institution (ADI) licence under the Banking Act 1959.
This determination follows the acquisition of 86 400 Ltd by National Australia Bank Limited (NAB) in May 2021 and the subsequent transfer of 86 400’s banking assets and liabilities to NAB.
As FNG has reported, in January 2021, NAB announced its intention to acquire 86 400 to accelerate the growth of its digital bank, UBank, by combining UBank’s established customer base and name with 86 400’s technology and innovation capability.
The acquisition was subject to certain conditions, including approvals from the Treasurer, the Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC), and approval of the Scheme by 86 400 shareholders and the Federal Court. Those approvals were promptly received and NAB proceeded with the acquisition in May.