Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698837630242.pdf (New Zealand)
Reprint as at 26 November 2012 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 (SR 2009/209) Pursuant to section 157G of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).
Contents Title Commencement Expiry Application Interpretation Exemption from section 157I of Act Conditions of exemption in clause 6 Page 1 2 2 2 2 3 4 Notice Title This notice is the Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009.

Note Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This notice is administered by the Reserve Bank of New Zealand.

1 cl 2 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Reprinted as at 26 November 2012 2 3 4 5 (1) Commencement This notice comes into force on the day after the date of its notification in the Gazette.

Expiry This notice expires on the close of 1 March 2016.
Clause 3: amended, on 26 November 2012, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2012 (SR 2012/344).

Application This notice applies to— (a) (b) the year beginning on 1 March 2010; and each subsequent year up to and including the year be- ginning on 1 March 2015.

Clause 4: replaced, on 26 November 2012, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2012 (SR 2012/344).
Interpretation In this notice, unless the context otherwise requires,— Act means the Reserve Bank of New Zealand Act 1989 advertisement has the same meaning as in section 2A of the Securities Act 1978 generally accepted accounting practice has the same mean- ing as in section 3 of the Financial Reporting Act 1993 investment statement has the same meaning as in section 38C of the Securities Act 1978 liabilities does not include contingent liabilities measurement date, in respect of a year, means 1 October of the previous year notification date, in respect of a year, means the last working day of the previous year registered prospectus has the same meaning as in section 2(1) of the Securities Act 1978 year means a period of 12 months beginning on 1 March and ending with the close of the last day of February.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.

2 Reprinted as at 26 November 2012 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 cl 6 (3) 6 (1) The example used in clause 6(2) is only illustrative of that pro- vision and does not limit it.

If the example and that provision are inconsistent, the provision prevails.
Clause 5(1) measurement date: replaced, on 26 November 2012, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2012 (SR 2012/344).

Clause 5(1) notification date: replaced, on 26 November 2012, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2012 (SR 2012/344).
(b) Exemption from section 157I of Act Every deposit taker is exempted from section 157I of the Act in respect of a year if— (a) the consolidated liabilities of the borrowing group as at the measurement date for that year, calculated in ac- cordance with subclause (2), are less than $20 million; and on or before the notification date for that year, the de- posit taker provides the Bank with a written statement, signed by all directors of the deposit taker, setting out the following: (i) a statement that, according to the deposit taker’s assessment, it meets the requirements of the ex- emption (including the requirement in paragraph (a)): the figures that the deposit taker relies on in sup- port of that assessment: a statement that the deposit taker will be operat- ing on the basis of the exemption for that year.
(ii) (iii) (2) The consolidated liabilities of the borrowing group as at the measurement date must be calculated, in accordance with all measurement and recognition requirements under generally accepted accounting practice, using the following formula: Σx 12 where— Σx is the sum of the consolidated liabilities of the borrow- ing group (but excluding any liabilities owed by one member of the borrowing group to another) as at the end 3 cl 7 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Reprinted as at 26 November 2012 of every month for the 12 months preceding the meas- urement date.
Example The consolidated liabilities of deposit taker A’s borrowing group (excluding liabilities between members of the borrowing group), as at the end of each of the 12 months preceding 1 October 2009, are— 30 September 2009 31 August 2009 24 million 23.5 million 31 July 2009 30 June 2009 31 May 2009 30 April 2009 31 March 2009 28 February 2009 31 January 2009 31 December 2008 30 November 2008 31 October 2008 22 million 20 million 21 million 19 million 20 million 18 million 17 million 18 million 19 million 18 million 24+23.5+22+20+21+19+20+18+17+18+19+18 12 = 19.9583 The consolidated liabilities of deposit taker A’s borrowing group as at the measurement date for the year 1 March 2010 to 28 February 2011 are therefore less than $20 million for the purposes of subclause (1)(a).
(3) If a deposit taker does not have any guaranteeing subsidiaries, the reference in this clause to the consolidated liabilities of the borrowing group must be treated as a reference to the liabilities of the deposit taker.
Conditions of exemption in clause 6 The exemption in clause 6 is subject to the conditions that— the deposit taker must prominently state in every regis- (a) tered prospectus, investment statement, and advertise- ment relating to an offer of its debt securities that the creditworthiness of the deposit taker is not rated by a 7 4 Reprinted as at 26 November 2012 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Statement of reasons (b) (c) rating agency approved by the Bank under section 157J of the Act; and the deposit taker must, in every registered prospec- tus, and every investment statement under the section headed “What are my risks?”, relating to an offer of its debt securities, prominently— (i) disclose that it is not rated because it is operating under an exemption from the requirement under the Act to have a credit rating; and describe the general nature and effect of the ex- emption; and disclose that the exemption applies because the deposit taker and its borrowing group has liabil- ities of less than $20 million, making it unduly onerous and burdensome to comply with the re- quirement under the Act to have a credit rating; and (ii) (iii) the deposit taker must not disclose, in any registered prospectus, investment statement, or advertisement re- lating to an offer of its debt securities, an assessment of its creditworthiness that is in substance a credit rating (whether called a rating, grading, scoring, ranking, or by any other name) issued by an agency that is not ap- proved by the Bank under section 157J of the Act.
Dated at Wellington this 29th day of July 2009.

Grant Spencer, Deputy Governor.


Statement of reasons Note: the following statement of reasons should be read in con- junction with the statement(s) of reasons appended to: • Deposit Takers (Extension of Terms) Exemption Notice 2012 5 Statement of reasons Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Reprinted as at 26 November 2012 This notice comes into force on the day after the date of its notifica- tion in the Gazette and expires on 1 March 2013.
It exempts entities that are deposit takers for the purposes of Part 5D of the Reserve Bank of New Zealand Act 1989 (the Act) from the requirement to have a credit rating under section 157I of the Act if— • the consolidated liabilities of the borrowing group, or in the case of a deposit taker that is not part of a borrowing group, the liabilities of the deposit taker, are less than $20 million (measured as an average over a specified 12-month period); and the deposit taker meets certain requirements concerning noti- fication to the Reserve Bank of New Zealand of its intention to operate on the basis of the exemption.
• The exemption is subject to conditions.
The Reserve Bank of New Zealand, after taking into account the prin- ciples set out in section 157F of the Act, considers it is appropriate to grant the exemption because— • the Bank is satisfied that the exemption is consistent with the maintenance of a sound and efficient financial system in that the liabilities of the exempted entities represent a very small percentage of the total liabilities of the deposit taking sector: the additional direct and indirect costs of obtaining a credit rating are unduly onerous and burdensome when compared with the balance sheet size and average profitability of the ex- empted deposit takers: the benefits of the exemption are that unnecessary compliance costs are avoided and potential barriers to entry are removed, therefore maintaining competition in the deposit taking sector.
These benefits outweigh the costs of inconsistent treatment be- tween small and larger deposit takers and the loss of informa- tion to investors: the conditions of the exemption imposing disclosure require- ments on exempted deposit takers manage the risk posed by the absence of a credit rating, including any risk of the pub- lic being misled by the disclosure of ratings from a non-ap- proved agency, and therefore the extent of the exemption is not broader than what is reasonably necessary to address the matters that gave rise to the exemption.
• • • 6 Reprinted as at 26 November 2012 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Statement of reasons Note: the preceding statement of reasons should be read in con- junction with the statement(s) of reasons appended to: • Deposit Takers (Extension of Terms) Exemption Notice 2012 Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 6 August 2009.


7 Notes Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Reprinted as at 26 November 2012 Contents 1 2 3 4 General Status of reprints How reprints are prepared Changes made under section 17C of the Acts and Regulations Publication Act 1989 List of amendments incorporated in this reprint (most recent first) General This is a reprint of the Deposit Takers (Credit Ratings Min- imum Threshold) Exemption Notice 2009.
The reprint incorp- orates all the amendments to the notice as at 26 November 2012, as specified in the list of amendments at the end of these notes.

Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order.

For more information, see http://www.pco.parliament.govt.nz/reprints/.
Status of reprints Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment.

This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.
This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the prin- cipal enactment and its amendments are contained.

How reprints are prepared A number of editorial conventions are followed in the prep- aration of reprints.
For example, the enacting words are not 5 Notes 1 2 3 8 Reprinted as at 26 November 2012 Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Notes included in Acts, and provisions that are repealed or revoked are omitted.

For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.
4 Changes made under section 17C of the Acts and Regulations Publication Act 1989 Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice.

Changes that would alter the effect of the legislation are not permitted.
A new format of legislation was introduced on 1 January 2000.

Changes to legislative drafting style have also been made since 1997, and are ongoing.

To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legisla- tion reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.
In outline, the editorial changes made in reprints under the au- thority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint: • omission of unnecessary referential words (such as “of this section” and “of this Act”) typeface and type size (Times Roman, generally in 11.5 point) layout of provisions, including: • • indentation position of section headings (eg, the number and heading now appear above the section) format of definitions (eg, the defined term now appears in bold type, without quotation marks) format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”) 9 • • • • Notes Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2009 Reprinted as at 26 November 2012 • • • • • • • position of the date of assent (it now appears on the front page of each Act) punctuation (eg, colons are not used after definitions) Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly case and appearance of letters and words, including: • format of headings (eg, headings where each word formerly appeared with an initial cap- ital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter) small capital letters in section and subsection ref- erences are now capital letters • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accord- ingly running heads (the information that appears at the top of each page) format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chrono- logical).
List of amendments incorporated in this reprint (most recent first) Deposit Takers (Extension of Terms) Exemption Notice 2012 (SR 2012/344): clause 3 Wellington, New Zealand: Published under the authority of the New Zealand Government—2012 5 12 10