On the 28 February 2022 ME will hand back their ADI (Authorised Deposit-taking Institution) and become part of the Bank of Queensland (BOQ) Group, which include BOQ, Virgin Money (Australia) and BOQ Specialist.
As part of this transition, ME will no longer need to hold a separate ADI licence, so instead will operate under BOQ’s.
Below are some frequently asked questions to help you understand how operating under one licence could impact how your money is protected under the Financial Claims Scheme (FCS).
What is the Financial Claims Scheme?
The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.
Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other ADI that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).
What is an ADI?
ADI stands for Authorised Deposit-taking Institution. Since the Banking Act of 1959, a bank or financial institution must be an ADI if it is to accept deposits from members of the public. In essence, to operate as a bank, an ADI licence is required.
What happens when ME moves under BOQ’s ADI licence?
When ME moves under BOQ’s licence on 28 February 2022, a single guarantee of up to $250,000 will apply to your total deposits with the BOQ Group (BOQ, Virgin Money (Australia), BOQ Specialist and ME). This means if your total balances across all your accounts exceed $250,000, the protection available to you under the FCS will be limited to $250,000, and may be less than previously available when ME operated under its own licence. While your protection guarantee under the FCS might change, your money remains securely held with us.
What do I need to do?
You do not need to do anything; however, you should be aware that the sum of all account balances you have with the BOQ Group are subject to a single guarantee of up to $250k per customer.