Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752407243.pdf (New Zealand)
Reprint as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 (SR 2010/53) 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 5A 6 6A 6B 6C 7 8 9 10 Title Commencement Expiry Interpretation Exemption from requirement to have current credit rating Exemption from governance requirements Exemption from requirement to have risk management programme Exemption from capital ratio requirements Exemption from related party exposures requirements Exemption from liquidity requirements Conditions of exemptions in clauses 5 to 6C Further conditions of exemption in clause 5 Further condition of exemption in clause 6 Temporary exemption from requirement to have current credit rating [Revoked] Page 2 2 2 2 4 4 4 4 4 5 5 6 6 6 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.

This notice is administered by the Reserve Bank of New Zealand.
1 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 Temporary exemption from requirement to have current credit rating [Revoked] Further temporary exemption from requirement to have current credit rating [Revoked] Certain conditions of exemptions in clauses 5 to 6C do not apply to GPG Finance plc [Revoked] Further condition of exemptions in clauses 5 to 6C for GPG Finance plc [Revoked] Schedule Specified funding conduits and specified parents 7 7 7 7 7 Notice Title This notice is the Deposit Takers (Funding Conduits) Exemp- tion Notice 2010.
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 31 March 2015.

Clause 3: amended, on 1 September 2014, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2014 (LI 2014/353).

Clause 3: amended, on 23 December 2011, by clause 4 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432).
Interpretation In this notice, unless the context otherwise requires,— Act means the Reserve Bank of New Zealand Act 1989 allot has the same meaning as in section 2(1) of the Securities Act 1978 advertisement has the same meaning as in section 2A of the Securities Act 1978 credit rating means a rating of creditworthiness— (a) that,— cl 1 10A 11 12 13 1 2 3 4 (1) 2 Reprinted as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 cl 4 (i) (ii) in the case of a specified parent incorporated in New Zealand, is a local currency (New Zealand dollar), long-term, issuer rating; and in the case of any other specified parent, is a long- term issuer rating; and that is given by an approved rating agency (b) group, in relation to a specified funding conduit, means the group comprising the specified funding conduit’s specified parent and the specified parent’s subsidiaries investment statement has the same meaning as in section 38C of the Securities Act 1978 registered prospectus has the same meaning as in section 2(1) of the Securities Act 1978 specified funding conduit means a person whose name ap- pears in the first column of the Schedule specified parent, in relation to a specified funding conduit, means the person whose name appears in the second column of the Schedule opposite the specified funding conduit’s name subscriber has the same meaning as in section 2(1) of the Securities Act 1978.
In this notice, a reference to a debt security is a reference to a debt security allotted by the specified funding conduit follow- ing an offer of debt securities to the public.

(2) (3) 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.

Clause 4(1) allot: inserted, on 1 December 2010, by clause 4(1) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
Clause 4(1) credit rating: substituted, on 1 April 2011, by clause 4 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice 2011 (SR 2011/83).

Clause 4(1) subscriber: added, on 1 December 2010, by clause 4(1) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).

Clause 4(2): amended, on 1 December 2010, by clause 4(2) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
3 cl 5 5 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 Exemption from requirement to have current credit rating A specified funding conduit is exempted from section 157I of the Act.

Clause 5: amended, on 1 December 2010, by clause 5 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).

5A Exemption from governance requirements A specified funding conduit is exempted from section 157L of the Act.
Clause 5A: inserted, on 1 December 2010, by clause 6 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).

6 Exemption from requirement to have risk management programme A specified funding conduit is exempted from section 157M of the Act.

Clause 6: amended, on 1 December 2010, by clause 7 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
6A Exemption from capital ratio requirements (1) A specified funding conduit is exempted from sections 157T (2) and 157U of the Act.

The trustee in respect of the debt securities of a specified fund- ing conduit is exempted from section 157T of the Act in re- spect of those securities.

Clause 6A: inserted, on 1 December 2010, by clause 8 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
Exemption from related party exposures requirements 6B (1) A specified funding conduit is exempted from sections 157X and 157Y of the Act.

The trustee in respect of the debt securities of a specified fund- ing conduit is exempted from section 157X of the Act in re- spect of those securities.

Clause 6B: inserted, on 1 December 2010, by clause 8 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
(2) 4 Reprinted as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 cl 7 6C Exemption from liquidity requirements (1) A specified funding conduit is exempted from sections 157ZA and 157ZB of the Act.

The trustee in respect of the debt securities of a specified fund- ing conduit is exempted from section 157ZA of the Act in re- spect of those securities.
Clause 6C: inserted, on 1 December 2010, by clause 8 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).
(2) 7 (b) (c) (d) Conditions of exemptions in clauses 5 to 6C The exemptions in clauses 5 to 6C are subject to the conditions that— (a) the specified funding conduit must at all times be a wholly owned subsidiary of its specified parent; and the specified funding conduit must at all times use at least 95% of the subscriptions raised from the issue of debt securities to lend funds to, or to subscribe for or purchase securities in, its specified parent or any mem- ber of its group; and the specified funding conduit’s specified parent must at all times be liable to repay the money owing in respect of every debt security allotted by the specified funding conduit, either unconditionally or subject only to the condition that the specified funding conduit or another person has failed to do so; and the specified funding conduit must not allot any debt security on or after 1 February 2011 unless the sub- scriber has, before subscription, received written noti- fication that the specified funding conduit is exempted, until 31 March 2015, from— (i) the requirement in section 157I of the Act to have a credit rating; and the governance requirements in section 157L of the Act; and the risk management programme requirements in section 157M of the Act; and the capital ratio requirements in sections 157T and 157U of the Act; and (ii) (iii) (iv) 5 cl 8 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 (v) (vi) the related party exposures requirements in sec- tions 157X and 157Y of the Act; and the liquidity requirements in sections 157ZA and 157ZB of the Act.
Clause 7: substituted, on 1 December 2010, by clause 9 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).

Clause 7(d): amended, on 1 September 2014, by clause 3 of the Deposit Takers (Extension of Terms) Exemption Notice 2014 (LI 2014/353).
(b) Further conditions of exemption in clause 5 The exemption in clause 5 is subject to the further conditions that— (a) the specified funding conduit’s specified parent must at all times have a current credit rating; and the specified parent’s current credit rating must be dis- closed in every registered prospectus, investment state- ment, and advertisement that relates to offers of debt securities to the public made by the specified funding conduit on or after the date on which this notice comes into force.
Further condition of exemption in clause 6 The exemption in clause 6 is subject to the further condition that the specified funding conduit’s specified parent or group must at all times have a written programme that sets out the procedures that will be used to effectively identify and manage group credit risk, liquidity risk, market risk, and operational risk in a way that the specified parent considers appropriate for the operations of the group (including the specified funding conduit).
Temporary exemption from requirement to have current credit rating [Revoked] Clause 10: revoked, on 23 December 2011 (after expiring on 2 September 2010), by clause 6 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432).
8 9 10 6 Reprinted as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 Schedule 10A Temporary exemption from requirement to have current credit rating [Revoked] Clause 10A: revoked, on 23 December 2011 (after expiring on 1 April 2011), by clause 6 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432).
11 12 13 Further temporary exemption from requirement to have current credit rating [Revoked] Clause 11: revoked, on 1 April 2012, by clause 7(1) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432).

Certain conditions of exemptions in clauses 5 to 6C do not apply to GPG Finance plc [Revoked] Clause 12: revoked, on 1 December 2012, by clause 6(1) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice 2012 (SR 2012/82).
Further condition of exemptions in clauses 5 to 6C for GPG Finance plc [Revoked] Clause 13: revoked, on 1 December 2012, by clause 6(1) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice 2012 (SR 2012/82).
Schedule Specified funding conduits and specified parents cl 4(1) Specified funding conduit GMT Bond Issuer Limited TCNZ Finance Limited Transpower Finance Limited Works Finance (NZ) Limited Specified parent Goodman Property Trust Telecom Corporation of New Zealand Limited Transpower New Zealand Limited Downer EDI Limited, a company incorporated in Australia Schedule: amended, on 23 August 2013, by clause 4 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice 2013 (SR 2013/317).
7 Statement of reasons Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 Schedule: amended, on 1 December 2012, by clause 6(2) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice 2012 (SR 2012/82).

Schedule: amended, on 1 April 2012, by clause 7(2) of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432).
Schedule: amended, on 1 December 2010, by clause 10 of the Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435).

Schedule: amended, on 23 July 2010, by clause 6 of the Deposit Takers (Funding Con- duits) Exemption Amendment Notice 2010 (SR 2010/200).

Dated at Wellington this 9th day of March 2010.

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 the: • Deposit Takers (Extension of Terms) Exemption Notice 2014 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2013 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2012 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice (No 3) 2011 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2011 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice (No 3) 2010 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2010 • • • • • • This notice, which comes into force on the day after its notification in the Gazette, exempts the deposit takers listed in the Schedule (speci- fied funding conduits) from sections 157I and 157M of the Reserve 8 Reprinted as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 Statement of reasons Bank of New Zealand Act 1989 (the Act).
The exemptions are sub- ject to conditions, although clause 10 exempts 2 specified funding conduits temporarily from section 157I of the Act unconditionally.

The notice expires on 1 September 2014, except for clause 10, which expires on 1 September 2010.

Section 157I of the Act requires deposit takers to have a current credit rating.

Section 157M requires deposit takers to have a risk manage- ment programme.
Although the specified funding conduits are de- posit takers under Part 5D of the Act, they raise funds solely or sub- stantially in order to fund their parent companies and other members of their group.
The Reserve Bank of New Zealand, after taking into account the prin- ciples set out in section 157F of the Act and satisfying itself as to the matters set out in section 157G(2), considers it appropriate to grant the exemptions because— • requiring a specified funding conduit to incur the additional costs of complying with the requirements to have a current credit rating and a risk management programme in isolation from the specified funding conduit’s group is unduly onerous in circumstances where— • the specified funding conduit’s parent unconditionally guarantees debt securities issued by the specified fund- ing conduit: the specified funding conduit uses the funds it receives from depositors solely or substantially to fund its parent or members of its group: the specified funding conduit’s risk profile is indistin- guishable from that of its parent, and its parent is not a deposit taker: • • • the exemptions are available only to those deposit takers that are listed in the Schedule and that continue to satisfy the strict conditions in clause 7.
Accordingly, the exemptions are not broader than reasonably necessary to address the matters that gave rise to the need for them and are consistent with the main- tenance of a sound and efficient financial system.
9 Statement of reasons Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 Note: The preceding statement of reasons should be read in con- junction with the statement(s) of reasons appended to the: • Deposit Takers (Extension of Terms) Exemption Notice 2014 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2013 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2012 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice (No 3) 2011 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2011 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice (No 3) 2010 Deposit Takers (Funding Conduits) Exemption Amend- ment Notice 2010 • • • • • • Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 11 March 2010.

10 Reprinted as at 1 September 2014 Deposit Takers (Funding Conduits) Exemption Notice 2010 Notes Reprints notes 1 2 3 General This is a reprint of the Deposit Takers (Funding Conduits) Ex- emption Notice 2010 that incorporates all the amendments to that notice as at the date of the last amendment to it.
Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.

Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act.

A printed version of the reprint produced directly from this official electronic version also has official status.
Editorial and format changes Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012.

See also http://www.pco.parliament.govt.nz/editorial-conven- tions/.
4 Amendments incorporated in this reprint Deposit Takers (Extension of Terms) Exemption Notice 2014 (LI 2014/353): clause 3 Deposit Takers (Funding Conduits) Exemption Amendment Notice 2013 (SR 2013/317) Deposit Takers (Funding Conduits) Exemption Amendment Notice 2012 (SR 2012/82) Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2011 (SR 2011/432) Deposit Takers (Funding Conduits) Exemption Amendment Notice 2011 (SR 2011/83) Deposit Takers (Funding Conduits) Exemption Amendment Notice (No 3) 2010 (SR 2010/435) Deposit Takers (Funding Conduits) Exemption Amendment Notice 2010 (SR 2010/200) Deposit Takers (Funding Conduits) Exemption Notice 2010 (SR 2010/53): clause 10(2) 11 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 1 September 2014 Notes 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2014 12