Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752482585.pdf (New Zealand)
Reprint as at 11 May 2012 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 3 4 4 4 4 4 5 6 6 6 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 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 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 Further condition of exemptions in clauses 5 to 6C for GPG Finance plc Schedule Specified funding conduits and specified parents 6 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 1 September 2014.

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) in the case of a specified parent incorporated in New Zealand, is a local currency (New Zealand dollar), long-term, issuer rating; and that,— (i) cl 1 10A 11 12 13 1 2 3 4 (1) 2 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 cl 5 (ii) 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).
5 Exemption from requirement to have current credit rating A specified funding conduit is exempted from section 157I of the Act.

3 cl 5A Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 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 (2) 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).
6C Exemption from liquidity requirements (1) A specified funding conduit is exempted from sections 157ZA and 157ZB of the Act.

4 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 cl 7 (2) 7 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).
Conditions of exemptions in clauses 5 to 6C The exemptions in clauses 5 to 6C are subject to the conditions that— (a) (b) (c) (d) 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 1 September 2014, 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 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.
(ii) (iii) (iv) (v) (vi) 5 cl 8 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 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).
8 9 (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).
10 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).
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).
6 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 Schedule 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 The conditions in clauses 7(d) and 8 do not apply to GPG Fi- nance plc.
Clause 12: inserted, on 11 May 2012, by clause 4 of the Deposit Takers (Fund- ing Conduits) Exemption Amendment Notice 2012 (SR 2012/82).

Further condition of exemptions in clauses 5 to 6C for GPG Finance plc The exemptions in clauses 5 to 6C for GPG Finance plc are subject to the further condition that GPG Finance plc must not allot any debt security after the date that the Deposit Tak- ers (Funding Conduits) Exemption Amendment Notice 2012 comes into force.
Clause 13: inserted, on 11 May 2012, by clause 4 of the Deposit Takers (Fund- ing Conduits) Exemption Amendment Notice 2012 (SR 2012/82).
Schedule Specified funding conduits and specified parents cl 4(1) Specified funding conduit GPG Finance plc, a company incorporated in England and Wales TCNZ Finance Limited Transpower Finance Limited Works Finance (NZ) Limited Specified parent Guinness Peat Group plc, a company incorporated in England and Wales Telecom Corporation of New Zealand Limited Transpower New Zealand Limited Downer EDI Limited, a company incorporated in Australia Schedule: amended, on 11 May 2012, by clause 5 of the Deposit Takers (Funding Con- duits) Exemption Amendment Notice 2012 (SR 2012/82).
7 Statement of reasons Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 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 of reasons appended to the: • 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 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.

8 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 Statement of reasons 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.
Note: The preceding statement of reasons should be read in con- junction with the statement of reasons appended to the: • 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 • • 9 Statement of reasons Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 • • Deposit Takers (Funding Conduits) Exemption Amend- ment Notice (No 3) 2010 Deposit Amendment Notice 2010 (Funding Conduits) Exemption Takers Issued under the authority of the Acts and Regulations Publication Act 1989.
Date of notification in Gazette: 11 March 2010.

10 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 Notes 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) 5 Notes 1 2 3 General This is a reprint of the Deposit Takers (Funding Conduits) Ex- emption Notice 2010.
The reprint incorporates all the amend- ments to the notice as at 11 May 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 included in Acts, and provisions that are repealed or revoked 11 Notes Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 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.
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”) • • • • 4 12 Reprinted as at 11 May 2012 Deposit Takers (Funding Conduits) Exemption Notice 2010 Notes • • • • • • • 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).
5 List of amendments incorporated in this reprint (most recent first) 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) 13 Deposit Takers (Funding Conduits) Exemption Notice 2010 Reprinted as at 11 May 2012 Notes 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2012 14