Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752354199.pdf (New Zealand)
2011/83 Deposit Takers (Funding Conduits) Exemption Amendment Notice 2011 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 Principal notice amended Interpretation Further temporary exemption from requirement to have current credit rating Page 1 1 1 2 2 Notice Title This notice is the Deposit Takers (Funding Conduits) Exemp- tion Amendment Notice 2011.

Commencement This notice comes into force on the day after the date of its notification in the Gazette.

Principal notice amended This notice amends the Deposit Takers (Funding Conduits) Exemption Notice 2010.
1 cl 4 4 Deposit Takers (Funding Conduits) Exemption Amendment Notice 2011 2011/83 Interpretation Clause 4(1) is amended by revoking the definition of credit rating and substituting the following definition: “credit rating means a rating of creditworthiness— “(a) that,— “(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 “(b) that is given by an approved rating agency”.
5 Further temporary exemption from requirement to have current credit rating Clause 11(2) is amended by omitting “31 March 2011” and substituting “30 June 2011”.

Dated at Wellington this 28th day of March 2011.

Grant Spencer, Deputy Governor.

Statement of reasons This notice, which comes into force on the day after the date of its notification in the Gazette, amends the Deposit Takers (Funding Con- duits) Exemption Notice 2010 (the principal notice).
The principal notice exempts specified funding conduits from certain sections of the Reserve Bank of New Zealand Act 1989 (the Act), including section 157I, which requires deposit takers to have a current credit rating.

A condition of the exemption from section 157I is that the specified parent of a specified funding conduit must have a credit rating that is a local currency (New Zealand dollar), long-term, is- suer rating.
2 2011/83 Deposit Takers (Funding Conduits) Exemption Amendment Notice 2011 Statement of reasons • • • The amendments made by this notice— • have the effect of removing the requirement for the specified parent’s credit rating to be a New Zealand dollar rating if the specified parent is not incorporated in New Zealand; and extend, until 30 June 2011, the temporary unconditional ex- emption from section 157I of the Act granted to GPG Finance plc.
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 amend the exemptions because— • specified parents that are not incorporated in New Zealand (such as the specified parents of GPG Finance plc and Works Finance (NZ) Limited) cannot obtain a credit rating that is a New Zealand dollar rating and are therefore unable to satisfy the condition in clause 8(a) of the principal notice (as in force before its amendment by this notice): the amended definition of credit rating requires a specified par- ent incorporated outside New Zealand to have a long-term is- suer rating given by an approved rating agency: extending GPG Finance plc’s temporary unconditional ex- emption from section 157I will allow GPG Finance plc’s specified parent sufficient time to obtain the required credit rating.
These reasons are supplementary to the reasons supporting the ori- ginal grant of an exemption to funding conduits.

Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 31 March 2011.

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

12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2011 3