LLL’s ‘purpose unchanged’ despite status shift

In order to maintain its support of the LCA in a changing regulatory environment, LLL is returning to Religious Charitable Development Fund (RCDF) status.

In 2019, LLL transitioned from RCDF status to become an Authorised Deposit-taking Institution (ADI). Regulatory changes at that time prevented RCDFs from providing some depositors with at-call savings accounts unless they obtained an ADI licence under the Banking Act.

However, in 2022, the Australian Prudential Regulation Authority, which oversees ADIs, imposed stronger requirements for them to monitor, limit and control risks arising from transactions and associations with related entities. The updated requirements are relevant because of LLL’s support of the Lutheran Church – which is regarded as a related entity.

CEO Ross Smith said LLL had made this decision to return to RCDF status ‘because remaining as an ADI would have severely restricted our ability to make loans to LCA bodies, such as churches, schools, aged care and retirement living facilities – the very purpose for which LLL exists’.

‘For over a century, LLL has existed to provide business and financial support to the LCA’, Ross said. ‘This has been achieved with the support of our customers and our shared Christian values and this purpose remains unchanged.

‘The change [transitioning to an RCDF] will mean that we will be required to change the products available to customers, but it will not change our outstanding customer service. This will take some months to implement. LLL will continue to provide current services while we work through this change.

‘As we look to the future, we want to assure customers that LLL’s staff are prepared to assist you every step of the way. Through your partnership with LLL, we look forward to continuing to support you, the LCA and its community.’

He said LLL understood and valued the importance of anonymous giving through Regular Electronic Giving (REG) for individuals and congregations and can continue to offer REG for all customers. To do this, some customers may be required to authorise LLL to direct-debit an external banking institution or credit union. More information is available at lll.org.au/REG

LLL customers have been sent a letter or email detailing how this status transition will affect them, including changes to the products and accounts available, and the need to fill out a customer nomination form by June 2024. Customers should contact LLL at lll@lll.org.au or on 1800 556 457 with any questions, or if they have not received this notification or have limited access to the Internet.