Banking (Prudential Supervision) Act 1989

1:
1: This Act is the Banking (Prudential Supervision)
2: Except as provided in section 181(5) Section 1 heading amended 1 July 2022 section 298(1) Reserve Bank of New Zealand Act 2021 Section 1(1) amended 1 July 2022 section 298(2) Reserve Bank of New Zealand Act 2021 Section 1(2) amended 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
1A: Purpose
The purpose of this Act is to promote the prosperity and well-being of New Zealanders, and contribute to a sustainable and productive economy, by providing for the Reserve Bank of New Zealand, as the central bank, to be responsible for—
a: registering banks and undertaking prudential supervision of registered banks; and
b: carrying out other functions, and exercising powers, specified in this Act. Section 1A replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
1B: Overview
1: In this Act,—
a: Part 4 bank banker banking
b: Part 5
c: Part 5A
d: Part 5B
e: Part 5C
f: Part 7
2: This section is only a guide to the general scheme and effect of this Act.
3: In addition, the Reserve Bank of New Zealand Act 2021 Section 1B inserted 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
2: Interpretation
1: In this Act, unless the context otherwise requires,— banking group section 81 debt security section 8 designated settlement system section 156M director
a: a person occupying the position of director by whatever name called:
b: in the case of an entity that does not have directors as such, any trustee, manager, or other person who acts in relation to that entity in the same or a similar fashion as a director would act were that entity a company incorporated in New Zealand under the Companies Act 1993 disclosure statement section 81(2)﻿(a) document
a: any writing on any material:
b: any information recorded or stored by means of any tape-recorder, computer, or other device; and any material subsequently derived from information so recorded or stored:
c: any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:
d: any book, map, plan, graph, or drawing:
e: any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced financial institution
a: an insurer that issues, or is liable under, life policies within the meaning of section 6(1)
b: a building society as defined in section 2
c: a registered bank; and
d: a specified person or class of persons (including a body or bodies of persons, whether incorporated or not) ( see financial product section 7 FMA Part 2 Governor section 82 96 holding company section 5 home country supervisor Part 5 home jurisdiction
a: in the case of an overseas person that is a body corporate, the country in which that body is incorporated:
b: in the case of an overseas person that is an unincorporated body, the country in which that body has its head office or principal place of business licensed insurer section 6(1) managed investment scheme section 9 Minister New Zealand chief executive officer
a: the most senior officer of that bank who is ordinarily resident in New Zealand; or
b: another person who may be nominated by that bank and agreed to in writing by the Bank; or
c: if section 82(3) non-voting security operator overseas bank overseas person
a: a body corporate incorporated outside New Zealand; or
b: an unincorporated body that has its head office or principal place of business outside New Zealand parent bank participant
a: means a person who has agreed to participate in either a settlement system or a payment system in accordance with the rules of that system; and
b: in the case of a designated settlement system, includes an operator of the settlement system if the designation under section 156N(3)﻿(b) payment system
a: means a system or arrangement for—
i: the clearing or settlement of payment obligations; or
ii: the processing of payment instructions; and
b: includes any instruments, rules, and procedures that relate to the matters referred to in paragraph (a) qualifying interest
a: the legal or beneficial ownership of the specified security; or
b: the power to exercise, or control the exercise of, any voting right attached to the specified security; or
c: the power to acquire or dispose of the specified security; or
d: the power to control the acquisition or disposition of the specified security by another person; or
e: the powers referred to in paragraphs (b) to (d) under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the specified security registered bank section 69 section 76 Reserve Bank Bank Reserve Bank of New Zealand Act 2021 restricted word
a: means the words “bank”, “banker”, and “banking”; and
b: includes—
i: any of those words as part of any other word:
ii: a translation of those words into another language (whether or not the translation of those words is part of any other word) settlement system section 156M significant influence
a: the ability to directly or indirectly appoint 25% or more of the board of directors (or other persons exercising powers of management, however described) of the registered bank; or
b: a direct or indirect qualifying interest in 10% or more of the voting securities issued or allotted by the registered bank specified operator section 156M specified security section 6(1) subsidiary section 5(1)﻿(a)﻿(iii) and (b) trade mark section 5(1) voting right
a: means a currently exercisable right to cast a vote at meetings of shareholders or members of that body; but
b: does not include a right to vote that is exercisable only in 1 or more of the following circumstances:
i: during a period in which a payment or distribution (or part of a payment or distribution) in respect of the security that confers the voting right is in arrears or some other default exists:
ii: on a proposal that affects rights attached to the security that confers the voting right:
iii: on a proposal to put the body into liquidation or voluntary administration
iv: on a proposal for the disposal of the whole, or a material part, of the property, business, or undertaking of the body:
v: during the liquidation, receivership, voluntary administration,
c: does not include a right to vote that is exercisable only for a special, immaterial, or remote matter that is inconsequential to the control of the body voting security
2: For the purposes of Parts 4 5 associated person
a: that person directly or indirectly controls the management of the financial institution or registered bank; or
b: that person has a direct or indirect qualifying interest in 20% or more of the voting or non-voting securities issued by the financial institution or registered bank; or
c: that financial institution or registered bank directly or indirectly controls the management of that person; or
d: that financial institution or registered bank has a direct or indirect qualifying interest in 20% or more of the voting or non-voting securities issued by that person.
3: For the purposes of section 77A transaction
a: sale or transfer of property or financial products
b: issue or allotment of financial products
c: entering into, or giving effect to a provision in, a contract or arrangement; and
d: arriving at, or giving effect to, an understanding.
4: For the purposes of Part 5 substantial interest
a: that holding company directly or indirectly controls the management of that body; or
b: that holding company has a direct or indirect qualifying interest in 20% or more of the voting securities issued by that body.
5: An Order in Council under paragraph (d) of the definition of financial institution in subsection (1) is secondary legislation ( see Part 3 1964 No 134 s 2 1986 No 131 s 2 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2(1) bank note note repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) banking group inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) charter repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) clearing house repealed 24 November 2009 section 4(1) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) code of conduct repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) debt security inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) Deputy Chief Executive repealed 1 April 2019 section 5(3) Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 Section 2(1) Deputy Governor repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) designated payment system repealed 24 November 2009 section 4(2) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) designated settlement system inserted 24 November 2009 section 4(2) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) director inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) disclosure statement inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) economic objective repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) financial institution replaced 8 September 2010 section 241(1) Insurance (Prudential Supervision) Act 2010 Section 2(1) financial institution amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 2(1) financial institution amended 1 November 2006 section 4 Reserve Bank of New Zealand Amendment Act 2006 Section 2(1) financial product inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) financial year repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) FMA inserted 1 May 2011 section 82 Financial Markets Authority Act 2011 Section 2(1) foreign exchange repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) formulating repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) Governor replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) holding company replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) home country supervisor inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) home jurisdiction inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) licensed insurer inserted 8 September 2010 section 241(1) Insurance (Prudential Supervision) Act 2010 Section 2(1) managed investment scheme inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) Minister replaced 25 June 1997 section 2 Treasurer (Statutory References) Act 1997 Section 2(1) MPC monetary policy committee repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) net income repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) New Zealand chief executive officer inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) non-voting security inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) operating expenses repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) operator replaced 24 November 2009 section 4(3) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) overseas bank inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) overseas person inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) parent bank inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) participant replaced 24 November 2009 section 4(4) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) payment system inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) qualifying interest inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) remit repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) remit advice repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) Reserve Bank Bank inserted 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) Reserve Bank the Bank repealed 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(1) restricted word inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) security repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) settlement system inserted 24 November 2009 section 4(5) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) significant influence inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) specified operator inserted 24 November 2009 section 4(5) Reserve Bank of New Zealand Amendment Act 2009 Section 2(1) specified security replaced 25 August 2005 section 75 Overseas Investment Act 2005 Section 2(1) subsidiary replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) trade mark inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) voting right inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(1) voting right amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 2(1) voting right amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 2(1) voting security inserted 21 August 2003 section 3(1) Reserve Bank of New Zealand Amendment Act 2003 Section 2(2) replaced 21 August 2003 section 3(2) Reserve Bank of New Zealand Amendment Act 2003 Section 2(2) amended 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 2(3) inserted 21 August 2003 section 3(2) Reserve Bank of New Zealand Amendment Act 2003 Section 2(3)﻿(a) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(3)﻿(b) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(4) inserted 21 August 2003 section 3(2) Reserve Bank of New Zealand Amendment Act 2003 Section 2(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3: Interpretation of provisions relating to false or misleading information
For the purposes of this Act, a reference to information or data that is false or misleading includes a reference to information or data that is false or misleading by reason of—
a: the form or context in which it is published or supplied; or
b: the omission of any other information that is material in the form and context in which it is published or supplied.
3A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1 Section 3A inserted 21 December 2018 section 6 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
4: Act to bind the Crown
This Act shall bind the Crown.
1: Constitution of Reserve Bank of New Zealand
Part 1 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
5: Reserve Bank of New Zealand
Section 5 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
6: Branches and agencies
Section 6 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
2: Functions and powers of Reserve Bank
Part 2 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Central bank Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
7: Bank to act as central bank
Section 7 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Monetary policy Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
8: Function to formulate monetary policy through MPC
Section 8 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
9: Function to implement monetary policy
Section 9 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
10: Remit for MPC
Section 10 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
11: Other matters relating to remit
Section 11 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
12: Order providing for different economic objective or objectives
Section 12 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
13: Order must include replacement remit
Section 13 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
14: Effect of order on current remit
Section 14 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
15: Period may be extended
Section 15 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
15A: Revocation of order
Section 15A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
15B: Functions under sections 8 and 9 not affected
Section 15B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
15C: Regular reports on monetary policy
Section 15C repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
15D: Longer-term report on formulation and implementation of monetary policy
Section 15D repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Foreign exchange Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
16: Dealing in foreign exchange by Bank
Section 16 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
17: Power of Minister to direct Bank to deal in foreign exchange within guidelines
Section 17 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
18: Power of Minister to fix exchange rates for foreign exchange dealing by Bank
Section 18 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
19: Effect of directions on operational objectives
Section 19 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
20: Effect of directions on monetary policy
Section 20 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
21: Foreign exchange gains and losses
Section 21 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
22: Temporary suspension of foreign exchange business
Section 22 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
23: Bank to advise Minister on foreign exchange matters
Section 23 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
24: Foreign reserves
Section 24 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Currency Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
25: Issue of currency by Bank
Section 25 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
26: Power of Bank to call in currency
Section 26 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
27: Legal tender
Section 27 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
28: Defacing bank notes
Section 28 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
29: Making or issuing of other bank notes or coins
Section 29 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
30: Reproduction or imitation of currency
Section 30 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Other functions and powers Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
31: Bank to act as lender of last resort
Section 31 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
32: Bank may provide settlement account services
Section 32 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
33: Policy advice
Section 33 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
34: Government banking business
Section 34 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
35: Financial products registry services
Section 35 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
36: Bank may require financial institution to supply information
Section 36 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
37: Failure to supply information
Section 37 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
38: Requirement that information be audited
Section 38 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
39: Powers
Section 39 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
3: Management of Reserve Bank
Part 3 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Governor and Deputy Governor Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
40: Governor
Section 40 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
41: Duties of Governor
Section 41 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
42: Conditions of
appointment Section 42 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
43: Deputy Governor
Section 43 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
44: Term of appointment and conditions of appointment of Deputy Governor
Section 44 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
45: Extension of term of Governor or Deputy Governor
Section 45 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
45A: Validity of appointments
Section 45A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
46: Disqualification of Governor and Deputy Governor
Section 46 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
47: Incapacity of Governor and
Deputy Governor Section 47 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
48: Vacancy in office of Governor
Section 48 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
48A: Deputy Governor may act pending appointment
Section 48A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
48B: Vacancy in office of Deputy Governor
Section 48B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
49: Removal of Governor from office
Section 49 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
50: Removal of Deputy Governor from office by Order in Council
Section 50 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
51: Delegation
Section 51 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Board of directors Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
52: Board of directors
Section 52 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
53: Duties of Board
Section 53 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
53A: Board must prepare annual report
Section 53A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
53B: Board must supply reports or other information to Minister
Section 53B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
53C: Bank must supply reports or information to Board
Section 53C repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
54: Membership of Board
Section 54 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
55: Term of office of non-executive directors
Section 55 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
56: Considerations affecting appointment of non-executive directors
Section 56 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
57: Extraordinary vacancies
Section 57 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
58: Disqualification of non-executive directors
Section 58 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
59: Removal from office of non-executive directors
Section 59 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
59A: Chairperson and deputy chairperson of Board
Section 59A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
60: Meetings of Board
Section 60 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
60A: Teleconference meeting
Section 60A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
60B: Directors to be notified of meetings
Section 60B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
60C: Who presides at meetings of Board
Section 60C repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
61: Directors to disclose interests
Section 61 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
62: Committees
Section 62 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63: Fees and expenses of non-executive directors
Section 63 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Monetary policy committee Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63A: Establishment of monetary policy committee
Section 63A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63B: Functions of MPC
Section 63B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63C: Membership of MPC
Section 63C repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63D: Charter
Section 63D repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63E: Content of charter
Section 63E repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63F: Replacement charter
Section 63F repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63G: Consultation about replacement charter
Section 63G repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63H: Publication of charter
Section 63H repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63I: Status of charter
Section 63I repealed 28 October 2021 section 3 Secondary Legislation Act 2021
63J: Code of conduct
Section 63J repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63K: Content of code
Section 63K repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63L: Publication and status of code
Section 63L repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63M: Other matters
Section 63M repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Appointment procedure Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
63N: Appointment procedure
Section 63N repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
4: Use of words ‘bank’, ‘banker’, and ‘banking’
Part 4 replaced 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Limit on use of restricted words in name or title Heading inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
64: Limit on use of restricted words in name or title
1: No person may—
a: be formed, incorporated, or registered using a name or title that includes a restricted word; or
b: change a person's name or title to a name or title that includes a restricted word; or
c: carry on any activity directly or indirectly in New Zealand (whether through an agent or otherwise) using a name or title that includes a restricted word.
2: Subsection (1) does not apply to—
a: the Bank; or
b: a registered bank; or
c: any person who is authorised by the Bank under section 65
d: any person who is exempted under section 66
3: Despite subsection (2)﻿(b), a registered bank must not use, without an authorisation from the Bank under section 65(1)﻿(e) managed investment scheme of which the registered bank is a supervisor or a manager within the meaning of section 6(1)
4: Subsection (2)﻿(b) does not extend to a person carrying on any activity by means of, or through the agency of, a registered bank.
5: A person commits an offence if the person contravenes this section.
6: The penalty for an offence against this section is set out in section 66M
7: In this section (except subsection (1)﻿(a) to (c)) and sections 65 66 use Section 64 replaced 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 64(3) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
65: Bank may authorise use of restricted words in name or title
1: The Bank may authorise any of the following persons to use a name or title that includes a restricted word:
a: a person licensed or registered as a bank in a country other than New Zealand:
b: a class of persons licensed or registered as banks in a country other than New Zealand:
c: a person that is formed, incorporated, or registered to represent the interests of—
i: any registered bank; or
ii: any person connected with a registered bank:
d: an associated person of a registered bank:
e: a registered bank or an associated person of a registered bank that intends to use a name or title that includes a restricted word in respect of a managed investment scheme of which the registered bank or the associated person is a supervisor or a manager within the meaning of section 6(1)
f: a person that is not a financial institution.
2: In the case of an authorisation under subsection (1)﻿(a), the Bank must—
a: give the authorisation by notice in writing to the person; and
b: impose both of the following conditions:
i: the condition that the person use a particular name or title approved by the Bank; and
ii: the condition that the person carry on in New Zealand only those activities specified by the Bank in the notice.
3: In the case of an authorisation under subsection (1)﻿(b),—
a: the authorisation is secondary legislation ( see Part 3
b: the Bank must impose the condition that each member of the class of persons carries on in New Zealand only those activities specified by the Bank in the authorisation in respect of the class to which that member belongs.
4: In the case of an authorisation under subsection (1)﻿(c) to (f), the Bank must—
a: give the authorisation by notice in writing to the person; and
b: impose the condition that the person uses a particular name or title approved by the Bank.
5: Nothing in subsections (2) to (4) prevents the Bank from imposing any other conditions to the authorisation that it thinks fit.
6: The Bank may, at any time, revoke an authorisation, or vary or remove a condition of an authorisation, or add a condition of an authorisation, by,—
a: in the case of an authorisation that relates to a person, notice in writing to the person; or
b: in the case of an authorisation that relates to a class of persons, notice in the Gazette
7: Any authorisation given under this section applies to any other person (for example, the Registrar of Companies), but only to the extent that the acts of that person are necessary to allow the person to whom the authorisation is given to have the benefit of that authorisation. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 65 replaced 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 65(1)﻿(e) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65(3) replaced 28 October 2021 regulation 107 Legislation Act (Amendments to Legislation) Regulations 2021
66: Certain persons exempt from application of section 64
Nothing in section 64(1)
a: the restricted word signifies a geographic place name or the name of a natural person; and
b: the name or title is not used in respect of a financial institution, or could not reasonably be mistaken for the name or title of a financial institution. Section 66 replaced 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66A: Application of Companies Act 1993
Nothing in sections 65 66 Companies Act 1993
a: sections 20 to 24
b: section 333 Section 66A inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Limit on use of restricted words in advertisement Heading inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66B: Limit on use of restricted words in advertisement
1: No specified person may use a restricted word in any advertisement unless the advertisement contains a statement that complies with subsection (2).
2: The statement must—
a: state that the specified person is not a registered bank; and
b: be communicated in a manner that ensures, as far as is reasonably practicable, that the statement attracts the attention of the persons to whom the advertisement is directed.
3: A specified person commits an offence if the specified person contravenes this section.
4: The penalty for an offence against this section is set out in section 66M
5: In this section and sections 66D 66M advertisement
a: means any thing used to promote—
i: the interests of a specified person; or
ii: the services or products of that person; and
b: includes a trade mark of a specified person; but
c: does not include the name or title of a specified person specified person
a: is a financial institution; and
b: is not a registered bank. Section 66B inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Powers of Bank in relation to use of restricted words Heading inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66C: Power to obtain information
1: If the Bank believes or has reasonable grounds for believing that there has been a contravention of section 64 section 66B
a: produce to the Bank a document in the person's possession, custody, or control:
b: supply the Bank with information or an explanation about any information.
2: The Bank may exercise the power in subsection (1) only if the Bank has reasonable cause to believe that the person may have information or documents relevant to the purpose of that subsection.
3: A person to whom a notice is given must comply with the notice within the period of time specified by the Bank (which period must be reasonable in the circumstances).
4: A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
5: The penalty for an offence against this section is set out in section 66M Section 66C inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66D: Power to require change of name, etc
1: If the Bank is satisfied on reasonable grounds that a person has contravened, or is contravening, section 64 section 66B
a: change that person's name or title to a name or title that does not include a restricted word:
b: cease using a restricted word in an advertisement:
c: cease carrying on any activity using a name or title that includes a restricted word.
2: The Bank may require any person to whom a notice is given to supply the Bank with information or documents that may be necessary for the Bank to verify that the notice has been complied with.
3: A person must comply with a requirement of the Bank under this section within the period of time specified by the Bank (which period must be reasonable in the circumstances).
4: A person commits an offence if the person fails to comply with this section.
5: The penalty for an offence against this section is set out in section 66M Section 66D inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66E: Power to appoint person to enter and search premises
1: This section applies if the Bank has reasonable cause to believe—
a: that any information or documents supplied to the Bank under section 66C section 66D(2)
b: that a person has failed to comply with any requirement to supply information or documents under section 66C section 66D(2)
2: If this section applies, the Bank may appoint, in writing, any suitably qualified person to enter and search any premises.
3: A person appointed under subsection (2) may—
a: inspect, remove, and take copies of any documents relating to the use of a restricted word that may be in the possession, custody, or control of any person; and
b: if necessary, require the reproduction in usable form of any information recorded or stored in those documents.
4: A person commits an offence if, without lawful justification or excuse, the person hinders, obstructs, or delays the conduct of any search by a person appointed under subsection (2).
5: The penalty for an offence against this section is set out in section 66M Section 66E inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66F: Requirements on entering and searching premises
1: A person appointed under section 66E(2)
a: the occupier of the premises, or the person who has possession, custody, or control of the documents, agrees; or
b: the person appointed under section 66E(2) section 66I
2: A person authorised to enter and search any premises under a warrant must, on first entering those premises and, if requested, at any subsequent time, produce—
a: evidence of that person's authority to enter the premises; and
b: evidence of that person's identity. Section 66F inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66G: Confidentiality of information or documents
1: This section applies to information or documents supplied or disclosed to, or obtained by, the Bank for the purposes of, or in connection with, the exercise of powers conferred by this Part.
2: The Bank, any officer or employee of the Bank, or a person appointed under section 66E(2)
a: with the consent of the person to whom the information relates or of the person to whom the information is confidential; or
b: to the extent that the information is available to the public under any Act, including the Official Information Act 1982
c: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty conferred or imposed on the Bank by this Act or any other legislation; or
d: in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or
e: under subpart 3
f: to any person who the Bank is satisfied has a proper interest in receiving the information.
3: The Bank, any officer or employee of the Bank, or a person appointed under section 66E(2)
4: A person referred to in subsection (5) commits an offence if the person contravenes this section.
5: The persons are—
a: any officer or employee of the Bank; or
b: a person appointed under section 66E(2)
6: The penalty for an offence against this section is set out in section 66M Section 66G inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 66G(2)﻿(c) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 66G(2)﻿(e) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
66H: Limits on further disclosure of information or documents published or disclosed under section 66G
1: A person to whom any information or documents are published or disclosed under section 66G
a: in the case of a publication or disclosure under section 66G(2)﻿(a)
b: in the case of a publication or disclosure under section 66G(2)﻿(c)
i: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty referred to in that paragraph; and
ii: in accordance with any conditions that the Bank may have imposed:
c: in the case of a publication or disclosure under section 66G(2)﻿(f)
i: authorised by the Bank and in accordance with any conditions that the Bank may have imposed; or
ii: necessary or desirable for the performance of any function or exercise of any power conferred by any enactment.
2: A person commits an offence if the person contravenes this section.
3: The penalty for an offence against this section is set out in section 66M Section 66H inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 66H(1)﻿(b)﻿(i) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
66I: Procedure for obtaining warrants
1: An issuing officer (within the meaning of section 3 section 66E(2) subpart 3
a: that any information or documents supplied to the Bank under section 66C section 66D(2)
b: that a person has failed to comply with any requirement to supply information or documents under section 66C section 66D(2)
2: The provisions of Part 4 sections 118 119 Section 66I inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 66I(1) amended 1 October 2012 section 297(1) Search and Surveillance Act 2012 Section 66I(2) inserted 1 October 2012 section 297(2) Search and Surveillance Act 2012
66J: Effect of warrant
Section 66J repealed 1 October 2012 section 297(3) Search and Surveillance Act 2012
66K: Effect of proceedings
1: If any person commences any proceedings in any court in respect of the exercise of any powers conferred by section 66E
2: This section applies despite the provisions of any other Act or any rule of law. Section 66K inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66L: Effect of final decision that exercise of powers under section 66E unlawful
1: This section applies if—
a: any power conferred by section 66E
b: that exercise has been declared to be unlawful in a final decision given in proceedings in respect of the exercise of that power.
2: The Bank must ensure that, as soon as practicable after the decision is given,—
a: any information supplied by a person and any documents or records obtained as a result of the unlawful exercise of the power are returned to the person previously having possession, custody, or control of those documents or records, and any copies of those documents or records are destroyed:
b: any documents or records derived from, or based on, the documents or records are destroyed.
3: No information, documents, or records obtained as a result of the unlawful exercise of the power are admissible in evidence in any proceedings. Section 66L inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Penalty for offences against this Part Heading inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003
66M: Penalty for offences
1: A person who commits an offence against any of the provisions listed in subsection (2) is liable, on
a: in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000; and
b: in the case of a body corporate, to a fine not exceeding $1,000,000.
2: The provisions are—
a: section 64
b: section 66B
c: section 66C
d: section 66D
e: section 66E
f: section 66G
g: section 66H Section 66M inserted 21 August 2003 section 10 Reserve Bank of New Zealand Amendment Act 2003 Section 66M(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011
5: Registration of banks and prudential supervision of registered banks
67A: Interpretation in this Part
In this Part, unless the context otherwise requires,— action that is likely to have a detrimental effect on financial system stability in Australia authorised deposit-taking institution section 5(1) of the Banking Act 1959 of the Parliament of the Commonwealth of Australia outsourcing arrangement prescribed Australian financial authority section 68A Section 67A inserted 15 December 2006 section 5 Reserve Bank of New Zealand Amendment Act 2006
67: Registration and prudential supervision
The Bank shall in accordance with this Part—
a: register banks; and
b: undertake prudential supervision of registered banks. 1964 No 134 s 38I 1986 No 131 s 10
68: Exercise of powers under this Part
The powers conferred on the Governor-General, the Minister, and the Bank by this Part shall be exercised for the purposes of—
a: promoting the maintenance of a sound and efficient financial system; or
b: avoiding significant damage to the financial system that could result from the failure of a registered bank. 1964 No 134 s 38J 1986 No 131 s 10
68A: Trans-Tasman co-operation
1: When performing functions or duties or exercising powers under this Part or the Insurance (Prudential Supervision) Act 2010
a: support prescribed Australian financial authorities in meeting their statutory responsibilities relating to prudential regulation and financial system stability in Australia; and
b: to the extent reasonably practicable, avoid any action that is likely to have detrimental effect on financial system stability in Australia.
2: Subsection (3) applies where the Bank has reasonable cause to believe that an action it proposes to take is an action that is likely to have a detrimental effect on financial system stability in Australia.
3: The Bank must, to the extent it considers reasonably practicable in the circumstances having regard to urgency or other similar constraint, consult with and consider the advice of every prescribed Australian financial authority it considers to be relevant in the circumstances before taking the proposed action.
4: No performance of a function or duty or exercise of a power is invalid by reason only of a failure to comply with the provisions of this section.
5: The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing Australian financial authorities for the purposes of this section and section 121A
6: Regulations under subsection (5) are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 68A inserted 15 December 2006 section 6 Reserve Bank of New Zealand Amendment Act 2006 Section 68A(1) amended 8 September 2010 section 241(1) Insurance (Prudential Supervision) Act 2010 Section 68A(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
68B: Bank to have regard to directions about government policy objectives
Section 68B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Registration of banks
69: Register
1: The Bank must keep a public register of persons known as registered banks.
2: The Bank must determine the form of the register and may amend the form from time to time as it considers necessary.
2A: The register must include—
a: the name of each registered bank; and
b: the current rating of each registered bank under section 80
c: any other prescribed information.
3: The Bank must take all reasonable steps to ensure that the information contained in the public register is available to members of the public at all reasonable times. Section 69 replaced 1 November 2006 section 7 Reserve Bank of New Zealand Amendment Act 2006 Section 69(2A) inserted 4 September 2013 section 4 Reserve Bank of New Zealand Amendment Act 2013
70: Application for registration
1: Any person may apply to the Bank to be registered as a registered bank.
2: Applications to be registered as a registered bank shall be—
a: made in such manner as may be specified by the Bank; and
b: accompanied by payment of such fee as may be determined by the Bank from time to time with the approval of the Minister
3: Every person who makes an application under this section shall furnish to the Bank such information as may be required by the Bank to assist it in determining the application.
4: A person commits an offence if the person provides false or misleading information to the Bank for the purposes of an application.
5: The penalty for an offence against this section is set out in section 156AC
6: A determination under subsection (2)﻿(b) is secondary legislation ( see Part 3 1964 No 134 s 38C(3), (4), (5) 1986 No 131 s 10 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 70(2)﻿(b) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 70(4) inserted 21 August 2003 section 11 Reserve Bank of New Zealand Amendment Act 2003 Section 70(5) inserted 21 August 2003 section 11 Reserve Bank of New Zealand Amendment Act 2003 Section 70(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
71: Voluntary removal of name from register
1: A registered bank may, by notice in writing, require the Bank to remove the name of that registered bank from the register on a date specified in the notice, not being a date earlier than 28 days, or such shorter period as the Bank may agree to, after the date the notice is given.
2: The registered bank shall, within 7 days of giving that notice, give public notice of the fact that it had given the notice to the Bank.
3: The Bank must—
a: remove the name of the registered bank from the register on the date specified in the notice; and
b: within 7 days after that date, arrange for the publication in the Gazette
4: Except with the consent of the Bank, a registered bank shall not give a notice under subsection (1) if—
a: a notice has been given to that registered bank under section 99(2)﻿(a)
b: a person has been appointed under section 99(2)﻿(b)
c: a person has been appointed under section 101
d: a direction is in force under section 113
e: the registered bank is subject to statutory management.
5: The Bank may refuse to remove the name of a registered bank from the register if—
a: a notice has been given to the registered bank under section 99(2)﻿(a)
b: a person has been appointed under section 99(2)﻿(b)
c: a person has been appointed under section 101
d: a direction is in force under section 113
e: the registered bank is subject to statutory management. Section 71(3) replaced 21 August 2003 section 12 Reserve Bank of New Zealand Amendment Act 2003 Section 71(4)﻿(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 71(4)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 71(4)﻿(d) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 71(5)﻿(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 71(5)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 71(5)﻿(d) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
72: Offence for person who is not registered bank to hold itself out to be registered bank
1: A person commits an offence if the person—
a: is not a registered bank; and
b: uses any name, title, trade mark, style, designation, or description that represents or implies that the person is a registered bank.
2: The penalty for an offence against this section is set out in section 156AC Section 72 replaced 21 August 2003 section 13 Reserve Bank of New Zealand Amendment Act 2003
73: Determination of applications
1: The Bank shall not register any person as a registered bank unless it is satisfied that the business carried on, or proposed to be carried on, by the applicant consists of, or to a substantial extent consists of, or will, or will to a substantial extent, consist of, the borrowing and lending of money, or the provision of other financial services, or both.
2: In determining an application under section 70
a: the incorporation and ownership structure of the applicant; and
b: the size and nature of the applicant's business or proposed business, or any part of the applicant's business or proposed business; and
c: the ability of the applicant to carry on its business or proposed business in a prudent manner; and
d: the standing of the applicant in the financial markets; and
e: the suitability for their positions of the directors and senior managers of the applicant; and
f: the standing of the owner of the applicant in the financial markets; and
g: any other matters that may be prescribed in regulations.
3: For the purposes of subsection (2)﻿(g), the Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters to which the Bank shall have regard in considering applications for registration.
4: The Bank shall give notice in the Gazette
5: Regulations under subsection (3) are secondary legislation ( see Part 3 1964 No 134 s 38D(1), (2), (4) 1986 No 131 s 10 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 73(2) replaced 21 August 2003 section 14 Reserve Bank of New Zealand Amendment Act 2003 Section 73(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
73A: Further matters to which Bank must have regard if applicant is overseas person
In determining an application from an overseas person, the Bank must, in addition to the matters set out in section 73(2)
a: the law and regulatory requirements of the applicant's home jurisdiction that relate to—
i: the recognition and priorities of claims of creditors or classes of creditors in the event of the insolvency of the applicant; and
ii: the disclosure by the applicant of financial and other information of the kind that a registered bank must disclose under section 81
iii: the accounting and auditing standards applicable to the applicant; and
iv: the duties and powers of directors of the applicant; and
v: the licensing, registration, authorisation, and supervision of the applicant; and
b: the nature and extent of the financial and other information disclosed to the public by the applicant. Section 73A inserted 21 August 2003 section 15 Reserve Bank of New Zealand Amendment Act 2003
73B: Further matters to which Bank must have regard if applicant is subsidiary of overseas person
In determining an application from a subsidiary of an overseas person, the Bank must, in addition to the matters set out in section 73(2)
a: the law and regulatory requirements of the home jurisdiction of the overseas person that relate to—
i: the disclosure by the overseas person of financial and other information of the kind that a registered bank must disclose under section 81
ii: the accounting and auditing standards applicable to the overseas person; and
iii: the duties and powers of the directors of the overseas person; and
iv: the licensing, registration, authorisation, and supervision of the overseas person; and
b: the nature and extent of the financial and other information disclosed to the public by the overseas person. Section 73B inserted 21 August 2003 section 15 Reserve Bank of New Zealand Amendment Act 2003
74: Conditions of registration
1: A person may be registered as a registered bank unconditionally or subject to any conditions that the Bank may impose.
2: The Bank may, by notice in writing to a registered bank,—
a: impose conditions of registration (whether or not the registration of the bank is subject to conditions); or
b: vary, remove, add to, or substitute any conditions of registration.
3: The Bank must not exercise a power referred to in subsection (2) unless—
a: the Bank gives the registered bank not less than 7 days' notice in writing of the Bank's intention to do so; and
b: the notice contains, or is accompanied by, a statement of the Bank's reasons; and
c: the registered bank has a reasonable opportunity to make submissions to the Bank; and
d: the Bank has regard to those submissions.
4: The Bank may impose conditions that relate to any of the following matters:
a: the matters to which the Bank must have regard under sections 73 to 73B
b: the matters referred to in section 78
c: the matters referred to in section 81
5: A registered bank commits an offence if the registered bank fails to comply with a condition of registration imposed by the Bank under this section.
6: The penalty for an offence against this section is set out in section 156AB Section 74 replaced 21 August 2003 section 16 Reserve Bank of New Zealand Amendment Act 2003
75: Publication of principles
Section 75 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
76: Registration of certain persons
1: Every person, that immediately before the commencement of this Act, was a registered bank, or deemed to be a registered bank, pursuant to Part 5A of the Reserve Bank of New Zealand Act 1964
2: If that person was registered, or deemed to have been registered, under that Act subject to any conditions, those conditions shall continue to apply as if they had been imposed under section 74
3: Nothing in subsection (1) or subsection (2) limits any other provisions of this Part.
77: Cancellation of registration
1: The Minister may, by notice in writing to the Bank given in accordance with a recommendation of the Bank, direct the Bank to cancel the registration of a registered bank.
2: The Bank shall not make a recommendation under subsection (1) unless it is satisfied—
a: that the registered bank was registered on information that was false or misleading in a material particular; or
b: that, in relation to a registered bank,—
i: there has been a change in any of the matters to which the Bank must have regard under section 73
ii: the Bank considers the change to be materially adverse to the registered bank's standing or financial position; or
ba: that, in relation to a registered bank,—
i: there has been a transfer of direct or indirect control of the registered bank; and
ii: the Bank considers the transfer to be materially adverse to the registered bank's standing or financial position; or
bb: that, in relation to a registered bank,—
i: there has been a change in any of the matters to which the Bank must have regard under section 73A section 73B
ii: the Bank considers the change to be materially adverse; or
c: if the registered bank is a body corporate—
i: that an order has been made for the winding up of that body corporate; or
ii: that a resolution has been passed for the voluntary winding up of that body corporate; or
iii: that a receiver has been appointed in respect of that body corporate; or
d:
e: that a condition of registration has not been complied with; or
f: that the registered bank has not carried on its business in a prudent manner; or
g: that the registered bank has failed to comply with an obligation imposed under this Act or imposed by regulations made under this Act
3: The Bank shall not make a recommendation under subsection (1) unless—
a: the Bank gives the registered bank not less than 7 days' notice in writing of the Bank's intention to consider making the recommendation; and
b: the notice contains or is accompanied by a statement of the Bank's reasons; and
c: the registered bank has a reasonable opportunity to make submissions to the Bank; and
d: the Bank has regard to those submissions.
4: A copy of any written submission made by the registered bank shall be sent to the Minister together with any recommendation by the Bank.
5: The Bank must, as soon as practicable after receiving a notice from the Minister under subsection (1),—
a: inform the registered bank in writing of—
i: the fact that the Minister has directed the Bank to cancel the registration of the registered bank; and
ii: the grounds on which the Bank's recommendation to cancel the registration of the registered bank was made; and
iii: the date of cancellation of the registration of the registered bank; and
b: publish a notice of the cancellation in the Gazette 1964 No 134 s 38F(1), (2), (3)﻿(a)–(e), (g), (4), (5) 1986 No 131 s 10 Section 77(1) replaced 21 August 2003 section 17(1) Reserve Bank of New Zealand Amendment Act 2003 Section 77(2)﻿(b) replaced 21 August 2003 section 17(2) Reserve Bank of New Zealand Amendment Act 2003 Section 77(2)﻿(ba) inserted 21 August 2003 section 17(2) Reserve Bank of New Zealand Amendment Act 2003 Section 77(2)﻿(bb) inserted 21 August 2003 section 17(2) Reserve Bank of New Zealand Amendment Act 2003 Section 77(2)﻿(d) repealed 21 August 2003 section 17(3)﻿(a) Reserve Bank of New Zealand Amendment Act 2003 Section 77(2)﻿(g) amended 21 August 2003 section 17(3)﻿(b) Reserve Bank of New Zealand Amendment Act 2003 Section 77(3) replaced 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Section 77(5) replaced 21 August 2003 section 17(4) Reserve Bank of New Zealand Amendment Act 2003
77A: Changes of ownership
1: A person must obtain the written consent of the Bank before giving effect to a transaction if,—
a: in the case of a person who does not have a significant influence over a registered bank, the transaction would result in that person acquiring a significant influence over that registered bank; or
b: in the case of a person who has, with the consent of the Bank, acquired a significant influence over a registered bank, the transaction would result in that person increasing the level of the person's significant influence over that registered bank beyond the level permitted in the existing consent; or
c: in the case of a person who acquired a significant influence over a registered bank before the commencement of the Reserve Bank of New Zealand Amendment Act 2003
2: The Bank may, in giving its consent,—
a: specify the level of significant influence that a person may have or acquire over any registered bank without the need for a further consent; and
b: impose any terms and conditions the Bank thinks fit.
3: The Bank may, at any time, by notice in writing, vary or revoke—
a: a consent given under this section; or
b: any term or condition of a consent.
4: A person commits an offence if the person fails to comply with subsection (1).
5: The penalty for an offence against this section is set out in section 156AA
6: For the purposes of this section, a reference to a registered bank is a reference to a registered bank that is not an overseas person. Section 77A inserted 21 August 2003 section 18 Reserve Bank of New Zealand Amendment Act 2003
77B: Effect of section 77A on contracts, etc
Nothing in section 77A Section 77B inserted 21 August 2003 section 18 Reserve Bank of New Zealand Amendment Act 2003
78: Carrying on business in prudent manner
1: In—
a: having regard, under section 73(2)﻿(c)
b: determining under section 77(2)﻿(f) or section 113(1)﻿(e) the Bank shall confine its consideration to the following matters:
c: capital in relation to the size and nature of the business or proposed business:
d: loan concentration or proposed loan concentration and risk exposures or proposed risk exposures:
e: separation of the business or proposed business from other business and from other interests of any person owning or controlling the applicant or registered bank:
f: internal controls and accounting systems or proposed internal controls and accounting systems:
fa: risk management systems and policies or proposed risk management systems and policies:
fb: arrangements for any business, or functions relating to any business, of the applicant or registered bank to be carried on by any person other than the applicant or the registered bank:
g: such other matters as may from time to time be prescribed in regulations.
2: The Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters for the purposes of subsection (1)﻿(g).
3: The Governor may
4: Regulations under subsection (2) are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 78(1)﻿(b) amended 21 August 2003 section 19(1) Reserve Bank of New Zealand Amendment Act 2003 Section 78(1)﻿(fa) inserted 21 August 2003 section 19(2) Reserve Bank of New Zealand Amendment Act 2003 Section 78(1)﻿(fb) inserted 21 August 2003 section 19(2) Reserve Bank of New Zealand Amendment Act 2003 Section 78(3) amended 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Section 78(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
79: Annual fee
Section 79 repealed 1 January 1996 Reserve Bank of New Zealand Amendment Act 1995
80: Credit rating of registered banks
1: The Bank may, by notice in writing to any registered bank or to all registered banks or to all members of any class of registered banks, require each of those banks to—
a: obtain a rating of its creditworthiness or financial condition by a person or organisation nominated or approved by the Bank; and
b: maintain a current rating of the type referred to in paragraph (a).
2: The Bank may require a registered bank to publish the registered bank's current rating, and all the qualifications to that rating, in the manner and with the frequency that the Bank directs.
3: A person commits an offence if the person fails to comply with this section.
4: The penalty for an offence against this section is set out in section 156AC Section 80 replaced 21 August 2003 section 20 Reserve Bank of New Zealand Amendment Act 2003 Financial disclosure by registered banks
81: Public disclosure of information or data by registered banks
1: The Governor-General may, by Order in Council made on the advice of the Minister that is given in accordance with a recommendation of the Bank, prescribe information or data that must be published by—
a: all registered banks; or
b: any class of registered banks specified in the order.
2: A registered bank to which an Order in Council applies must publish the information or data specified in the order—
a: in a document to be known as a disclosure statement; and
b: in the manner and with the frequency specified in the order.
3: The information or data that may be prescribed in an Order in Council includes, without limitation, information or data about—
a: the corporate matters of a registered bank; and
b: the financial matters of a registered bank; and
c: the prudential matters of a registered bank; and
d: any other matters relating to the business, operation, and management of a registered bank.
4: An Order in Council under this section is secondary legislation ( see Part 3
5: The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 67(d)﻿(i) 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 81 replaced 21 August 2003 section 21 Reserve Bank of New Zealand Amendment Act 2003 Section 81(4) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 81(5) repealed 28 October 2021 section 3 Secondary Legislation Act 2021
81AA: Further matters that may be prescribed
1: An Order in Council made under section 81
a: about an associated person of the registered bank if the associated person is incorporated, domiciled, or resident in New Zealand:
b: about an associated person of the registered bank if the information or data is publicly available in the country in which the associated person is incorporated, domiciled, or resident and if that country is not New Zealand:
c: about any individual member of its banking group, whether or not the member is incorporated, domiciled, or resident in New Zealand:
d: about a body incorporated in New Zealand, or an overseas company registered under section 337
2: An Order in Council made under section 81
a: prescribe information that is required to be contained in financial statements:
b: require the publication of financial statements and notes to those statements for any period or periods specified in the order:
c: require the information to be published in consolidated form:
d: require financial information that is required to be published to be taken from audited financial statements:
e: require the information that is required to be published to be audited and to be accompanied by an auditor's report:
f: require a disclosure statement to contain any statements specified in the order that are made by—
i: the directors of the registered bank or persons authorised in writing by the directors of the bank; and
ii: in the case of an overseas incorporated registered bank, its New Zealand chief executive officer:
g: incorporate by reference a framework, standard, specification, or requirement that is published by, or on behalf of, any body or person in any country—
i: in whole or in part; and
ii: with any modifications, additions, or variations specified in the Order in Council.
3: Schedule 1 section 81 Section 81AA inserted 21 August 2003 section 21 Reserve Bank of New Zealand Amendment Act 2003 Section 81AA(2)﻿(a) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 81AA(2)﻿(g) inserted 10 September 2008 section 16(1) Reserve Bank of New Zealand Amendment Act 2008 Section 81AA(3) replaced 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
81AB: Disclosure statement not required to include information or data about customers or clients of registered banks
1: Despite sections 81 81AA
a: the registered bank; or
b: an associated person of the registered bank; or
c: a company in which a holding company of the registered bank has a substantial interest.
2: Nothing in subsection (1) applies to the publication by a registered bank of information or data about transactions with related parties of—
a: the registered bank; or
b: an associated person of the registered bank; or
c: a company in which a holding company of the registered bank has a substantial interest.
3: Subsection (1) does not extend to the publication of the following matters:
a: the amount of any loan or risk exposure (without disclosing the identity of the particular customer or client to whom it relates); or
b: the number of loans or risk exposures that fall within a specified range of amounts and the actual amounts of those loans or risk exposures; or
c: the number of loans or risk exposures that fall within a specified range of percentages or are above a specified percentage, as the case may be, of the capital or equity of the registered bank, or an associated person of the registered bank, or the banking group or a company in which a holding company of a registered bank has a substantial interest, and the actual amounts involved. Section 81AB inserted 21 August 2003 section 21 Reserve Bank of New Zealand Amendment Act 2003
81AC: Duty to supply information or data to registered bank
1: This section applies to—
a: an associated person of a registered bank; and
b: a body incorporated in New Zealand, or an overseas company registered under section 337
2: A person to whom this section applies must, on being required by a registered bank to do so for the purpose of enabling the registered bank to comply with an Order in Council made under section 81 section 81AA
a: is in the possession, custody, or control of that person; and
b: is not in the possession, custody, or control of the registered bank.
3: A person to whom this section applies commits an offence if, without lawful justification or excuse, the person fails to comply with a requirement of a registered bank under this section.
4: The penalty for an offence against this section is set out in section 156AC Section 81AC inserted 21 August 2003 section 21 Reserve Bank of New Zealand Amendment Act 2003
81A: Bank to consult
1: Before making a recommendation under section 81(1)
a: consult with—
i: the FMA
ii: registered banks that will be affected by any Order in Council made under that subsection; and
iii: such other persons as the Bank considers will be substantially affected by any Order in Council made under that subsection or organisations representing those persons; and
b: ensure that the persons referred to in paragraph (a) have a reasonable opportunity to make submissions to the Bank; and
c: have regard to those submissions.
2: Failure to comply with subsection (1) does not affect the validity of any Order in Council under section 81(1)
3: Section 81A inserted 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Section 81A(1)﻿(a)﻿(i) amended 1 May 2011 section 82 Financial Markets Authority Act 2011 Section 81A(3) repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
82: Disclosure statements must be signed
1: Every disclosure statement that a registered bank is required to publish under section 81
a: in the case of a body corporate, by every director of the body corporate or by each director's agent authorised in writing to do so; and
b: in the case of an overseas incorporated registered bank, by its New Zealand chief executive officer or that person's agent authorised in writing to do so.
2: Every overseas incorporated registered bank must notify the Bank in writing of the name and address of its New Zealand chief executive officer and any subsequent changes to those details.
3: If an overseas incorporated registered bank fails to comply with subsection (2), the Bank may, after giving the registered bank 14 days' notice in writing of its intention to do so, specify a particular employee of that registered bank to be its New Zealand chief executive officer for the purposes of this Act.
4: If the Bank exercises the power conferred by subsection (3), it must give notice in writing to the registered bank as soon as practicable. Section 82 replaced 21 August 2003 section 22 Reserve Bank of New Zealand Amendment Act 2003
83: Bank may require disclosure statement to be corrected
Where the Bank considers that a disclosure statement published by a registered bank—
a: contains information that is false or misleading; or
b: does not contain information which it is required to contain, whether or not the information contained in the disclosure statement is false or misleading as a result of the omission,— the Bank may, by notice in writing to the registered bank, require the registered bank to—
c: publish a disclosure statement that does not contain false or misleading information; or
d: publish a disclosure statement that contains the information that was previously
e: take such other corrective action as the Bank may specify in the notice. Section 83(d) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Advertising by registered banks Heading repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
84: Interpretation
Section 84 repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
85: Content of advertisements by registered banks
Section 85 repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
86: Regulations
Section 86 repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
87: Offence to advertise in contravention of regulations
Section 87 repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
88: Bank may prohibit advertisements by registered banks
Section 88 repealed 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Provisions applying to disclosure statements Heading replaced 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
89: Offence to fail to publish required information in disclosure statement
1: A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to publish information that it is required to publish in a disclosure statement under section 81
2: The penalty for an offence against this section is set out in section 156AC Section 89 replaced 21 August 2003 section 23 Reserve Bank of New Zealand Amendment Act 2003
89A: Offence to publish false or misleading disclosure statements
1: If a disclosure statement that includes information that is false or misleading is published by a registered bank, all of the following persons commit an offence:
a: the registered bank; and
b: every director of the registered bank who signed the disclosure statement or on whose behalf the disclosure statement was signed; and
c: in the case of an overseas incorporated registered bank, the New Zealand chief executive officer who signed the disclosure statement or on whose behalf the disclosure statement was signed.
2: It is a defence to a prosecution for an offence against this section if—
a: the defendant proves that the information was immaterial; or
b: in the case of a defendant who is director of a registered bank or a New Zealand chief executive officer of an overseas incorporated registered bank, that defendant proves that he or she had reasonable grounds to believe, and believed, up to the publication of the disclosure statement, that the information was true.
3: The penalty for an offence against this section is set out in section 156AC Section 89A inserted 21 August 2003 section 23 Reserve Bank of New Zealand Amendment Act 2003
89B: Offence to fail to make most recent disclosure statement publicly available
1: A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to make its most recent disclosure statement publicly available in the manner set out in an Order in Council made under section 81
2: The penalty for an offence against this section is set out in section 156AB Section 89B inserted 21 August 2003 section 23 Reserve Bank of New Zealand Amendment Act 2003
89C: Other offences in relation to disclosure statements
1: A registered bank commits an offence if the registered bank fails to comply with a requirement of the Bank under section 83
a: publish a disclosure statement that does not contain false or misleading information; or
b: publish a disclosure statement that contains information that was previously omitted; or
c: take the corrective action specified by the Bank in a notice given under that section.
2: The penalty for an offence against this section is set out in section 156AC Section 89C inserted 21 August 2003 section 23 Reserve Bank of New Zealand Amendment Act 2003
90: Civil liability
Subject to section 91
a: the registered bank; and
b: every person holding office as a director of the registered bank at the time of the publication of the disclosure statement; and
c: the New Zealand chief executive officer of an overseas incorporated registered bank at the time of the publication of the disclosure statement. Section 90 replaced 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Section 90(a) replaced 21 August 2003 section 24 Reserve Bank of New Zealand Amendment Act 2003 Section 90(b) replaced 21 August 2003 section 24 Reserve Bank of New Zealand Amendment Act 2003 Section 90(c) inserted 21 August 2003 section 24 Reserve Bank of New Zealand Amendment Act 2003
91: Defences
A person is not liable under section 90
a: the disclosure statement was published without his or her knowledge or consent and, on becoming aware of the publication, he or she forthwith gave notice to the Bank that it was published without his or her knowledge or consent and, as soon as practicable, also gave reasonable public notice that it was published without his or her knowledge or consent; or
b: after publication of the disclosure statement and before the securities were subscribed for, he or she, on becoming aware of the false or misleading information, withdrew his or her consent to the disclosure statement, forthwith gave notice to the Bank of the withdrawal of that consent and, as soon as practicable, also gave reasonable public notice of the withdrawal of that consent; or
c: he or she had reasonable grounds to believe and did, up to the time of the subscription for the securities, believe that the statement was true. Section 91 replaced 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
92: Fair Trading Act 1986 not affected
Nothing in sections 89 to 91 Fair Trading Act 1986 Section 92 replaced 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995 Supply of information
93: Supply of information by registered banks for purposes of prudential supervision
1: For the purposes of this Part, the Bank may, by notice in writing to any registered bank or by notice in the Gazette
a: the corporate matters of the registered bank:
b: the financial matters of the registered bank:
c: the prudential matters of the registered bank:
d: any other matters relating to the business, operation, or management of the registered bank.
2: A registered bank may be required to supply information, data, or forecasts—
a: relating to business carried on by the registered bank in New Zealand or elsewhere (whether that business is carried on as principal, broker, agent, or intermediary); and
b: in a consolidated form (if specified by the Bank).
3: A notice may specify—
a: the periods for which, and the form in which, the information, data, or forecasts must be supplied; and
b: the time by which, and the place in New Zealand at which, the information, data, or forecasts must be supplied.
4: The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
5: A registered bank commits an offence if, without lawful justification or excuse, the registered bank—
a: fails to comply in any respect with any requirements of the Bank under this section; or
b: supplies information or data that the registered bank is required to supply under this section that is false or misleading in a material particular.
6: The penalty for an offence against this section is set out in section 156AB Section 93 replaced 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
93A: Scope of notice under section 93
The Bank may, by notice under section 93
a: any associated person of a registered bank; or
b: a body incorporated in New Zealand, or an overseas company registered under section 337 Section 93A inserted 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
93B: Certain persons may be required to supply information to registered banks
1: A person referred to in section 93A(a) or (b) section 93
2: A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
3: The penalty for an offence against this section is set out in section 156AB Section 93B inserted 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
93C: Supply of information by other persons for purposes of prudential supervision
1: If the Bank has reasonable grounds to believe that a person has information, data, or forecasts that the Bank could require a registered bank or a class of registered banks to supply under section 93
2: A notice may specify—
a: the periods for which, and the form in which, the information, data, or forecasts must be supplied; and
b: the time by which, and the place in New Zealand at which, the information, data, or forecasts must be supplied.
3: The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
4: A person commits an offence if, without lawful justification or excuse, the person—
a: fails to comply with any requirements of the Bank under this section; or
b: supplies information or data that the person is required to supply under this section that is false or misleading in a material particular.
5: The penalty for an offence against this section is set out in section 156AB Section 93C inserted 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
94: Requirement that information, data, or forecasts be audited
1: The Bank may, by notice in writing, require a registered bank or other person to obtain an audit, by an auditor approved by the Bank, of any information, data, or forecasts that the registered bank or other person, as the case may be, is required to supply under section 93 section 93C
2: A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
3: The penalty for an offence against this section is set out in section 156AA Section 94 replaced 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
95: Bank may require report relating to registered banks, etc
1: The Bank may, by notice in writing to a registered bank, require that registered bank to supply the Bank with a report or series of reports, prepared by a person approved by the Bank, on—
a: the corporate matters of the registered bank:
b: the financial matters of the registered bank:
c: the prudential matters of the registered bank:
d: any other matters relating to the business, operation, or management of the registered bank:
e: any of the matters referred to in paragraphs (a) to (d) in relation to—
i: any associated person of the registered bank:
ii: a body incorporated in New Zealand, or an overseas company registered under section 337
2: A person referred to in subsection (1)﻿(e)﻿(i) or (e)﻿(ii) must, if required to do so by a registered bank, supply information relating to that person in order to enable the registered bank to comply with a notice under this section.
3: A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
4: The penalty for an offence against this section is set out in section 156AC Section 95 replaced 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
95A: Bank may require report under section 95 to be published
1: The Bank may, by notice in writing to a registered bank, require that the report or series of reports, as the case may be, that has been prepared under section 95
2: A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to comply with this section.
3: The penalty for an offence against this section is set out in section 156AC Section 95A inserted 21 August 2003 section 25 Reserve Bank of New Zealand Amendment Act 2003
96: Disclosure of information to Bank by auditors
Every person who holds, or at any time has held, office as required by any enactment, as an auditor of a registered bank or an associated person of a registered bank or associated person
a: the registered bank or associated person
b: the disclosure of that information is likely to assist, or be relevant to, the exercise by the Bank of its powers under this Part. 1964 No 134 s 38M(1) 1986 No 131 s 10 1989 No 11 s 13 Section 96 amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 96(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
97: Auditor to inform
Every auditor shall, before disclosing any information to the Bank under section 96 or associated person 1964 No 134 s 38M(5) 1986 No 131 s 10 Section 97 heading amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 97 amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
98: Protection of auditors
1: No civil, criminal, or disciplinary proceedings shall lie against any auditor arising from the disclosure in good faith of information to the Bank pursuant to section 96
2: No tribunal, body, or authority, having jurisdiction in respect of the professional conduct of any auditor shall make any order against, or do any act in relation to, that person in respect of such disclosure.
3: No information received by the Bank pursuant to section 96
4: Nothing in subsection (3) of this section shall limit the admissibility of any information obtained in any other way. 1964 No 134 s 38M(2) 1986 No 131 s 10 1989 No 11 s 15 Access to information by home country supervisor Heading inserted 21 August 2003 section 26 Reserve Bank of New Zealand Amendment Act 2003
98A: Access to information by home country supervisor
1: This section applies to—
a: a registered bank; and
b: any member of the registered bank's banking group (being a member that has a physical presence in New Zealand).
2: For the purpose of the exercise by a home country supervisor of its supervisory functions, the Bank may authorise a home country supervisor to—
a: conduct an inspection of any person to whom this section applies; or
b: require any person to whom this section applies to supply to the home country supervisor any information, data, or forecasts relating to that person.
3: The information, data, or forecasts that a home country supervisor may be authorised to obtain may include, without limitation, information about the affairs of a particular customer or client of a person to whom this section applies.
4: The Bank may grant an authorisation only if it is satisfied that sufficient provision exists to protect the confidentiality of the information, data, or forecasts obtained or required by the home country supervisor.
5: An authorisation may be—
a: granted for the period or periods that the Bank thinks fit; and
b: varied, revoked, or amended by the Bank at any time.
6: The Bank must give notice in writing to a person to whom this section applies if the Bank—
a: grants an authorisation in relation to that person; or
b: varies, revokes, or amends that authorisation.
7: This section has effect despite anything to the contrary in any other enactment or rule of law.
8: For the purposes of this section, a member of a registered bank's banking group has a physical presence in New Zealand if that member—
a: has an office in New Zealand; or
b: has an agent in New Zealand. Section 98A inserted 21 August 2003 section 26 Reserve Bank of New Zealand Amendment Act 2003
98B: Duties of person on receipt of notice under section 98A
1: A person to whom section 98A
a: permitting the home country supervisor to conduct an inspection of that person; or
b: supplying the home country supervisor with the required information, data, or forecasts within the time, and at the place, specified in the notice.
2: A person commits an offence if, without lawful justification or excuse, the person—
a: fails to comply in any respect with any requirements notified by the Bank under this section; or
b: supplies any information or data that the person is required to supply under this section that is false or misleading in a material particular.
3: The penalty for an offence against this section is set out in section 156AA Section 98B inserted 21 August 2003 section 26 Reserve Bank of New Zealand Amendment Act 2003 Powers to obtain information and documents
99: Powers to obtain information and documents
1: This section applies if the Bank has reasonable cause to believe—
a: that any information or data published in a disclosure statement by a registered bank under section 81 section 83
b: that a registered bank has failed to publish information or data that it is required to publish in a disclosure statement under section 81 section 83
c: that any information or data supplied to the Bank by a registered bank under section 93
d: that any information or data supplied by a person to a registered bank under section 93B section 93C
e: that a registered bank or a person, as the case may be, has failed to comply with any requirement to supply information, data, or forecasts under section 93 section 93B section 93C
f: that a registered bank has failed to comply with section 95
2: If this section applies, the Bank may,—
a: by notice in writing to the registered bank or person, require that registered bank or person to supply to the Bank, within the time specified in the notice, the information or data specified in the notice; or
b: appoint, in writing, any suitably qualified person to enter and search any premises and inspect, remove, and take copies of any documents in the possession, custody, or control of any person and, if necessary, require the reproduction in usable form of any information recorded or stored in those documents.
3: A person commits an offence if, without lawful justification or excuse, the person hinders, obstructs, or delays, in the conduct of an inspection under this section, any person duly authorised to make that inspection.
4: A registered bank or person commits an offence if, without lawful justification or excuse, the registered bank or person—
a: fails to comply with any requirement of the Bank under subsection (2)﻿(a); or
b: supplies any information or data that is required to be supplied under subsection (2)﻿(a) that is false or misleading in a material particular.
5: The penalty for an offence against this section is set out,—
a: in the case of an offence against subsection (3), in section 156AB
b: in the case of an offence against subsection (4), in section 156AC Section 99 replaced 21 August 2003 section 27 Reserve Bank of New Zealand Amendment Act 2003
100: Requirements on entering and searching premises
1: No person appointed pursuant to section 99(2)﻿(b)
a: the occupier of the premises, or the person who has possession of the documents, agrees; or
b: that person obtains a warrant under section 106
2: Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106
a: evidence of that person's authority to enter the premises; and
b: evidence of that person's identity. 1964 No 134 s 38N(2), (7) 1986 No 131 s 10 1989 No 11 s 18 Section 100(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Investigations
101: Investigation of affairs of registered bank
Where the Bank is satisfied that it is necessary or desirable for the purpose of determining whether or not to exercise the powers conferred under section 113 section 117 or associated person of a registered bank or associated person of that registered bank 1964 No 134 s 38O(1) 1986 No 131 s 10 1989 No 11 s 19 Section 101 amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
102: Powers of person appointed to carry out investigation
1: Any person appointed under section 101 or associated person of a registered bank
a: by notice in writing, require that registered bank or associated person or associated person
i: supply any information or data relating to the business, operation, and management of the registered bank or associated person
ii: produce for inspection any documents of, or relating to, the business, operation, and management of that registered bank or associated person or associated person
iii: where necessary, reproduce in usable form any information recorded or stored in such documents:
b: take copies of any documents produced for inspection under paragraph (a):
c: require any officer or employee of that registered bank or associated person or associated person
1A: Any questioning under subsection (1)﻿(c) may be carried out by any person appointed under section 101
2: Subject to section 104 section 101 or associated person
a: enter and search any premises:
b: inspect, remove, and take copies of any documents, or extracts from documents, relating to the business, operation, and management of that registered bank or associated person
c: if necessary, require any person to reproduce in usable form any information recorded or stored in those documents. 1964 No 134 s 38O(2), (4) 1986 No 131 s 10 1989 No 11 s 21 Section 102(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(1)﻿(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(1)﻿(a)﻿(i) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(1)﻿(a)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(1)﻿(c) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(1A) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(2) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 102(2)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
103: Offences in relation to investigations
1: Every person commits an offence against this Act who, without lawful justification or excuse,—
a: hinders, obstructs, or delays any person appointed to carry out an investigation under section 101
b: refuses to answer any question put to him or her section 102
c: supplies any information , or provides an answer to any question, required to be supplied or provided section 102
2: Every registered bank or associated person of the registered bank
a: it fails to comply with any requirement of a person appointed to carry out an investigation under section 101
b: it supplies any information or data , or provides an answer to any question, required to be supplied or provided section 102(1)
3: The penalty for an offence against this section is set out in section 156AC 1964 No 134 s 38O(11), (12), (13) 1986 No 131 s 10 1989 No 11 s 20 Section 103(1)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 103(1)﻿(c) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 103(2) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 103(2)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 103(3) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
104: Requirements to be complied with by person carrying out investigation
1: Any person who exercises any powers conferred by section 102(1) section 101
2: No person who exercises any powers conferred by section 102(2)
a: the occupier of the premises, or the person who has possession of the documents, agrees; or
b: that person obtains a warrant under section 106
3: Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106
a: evidence of that person's authority to enter the premises; and
b: evidence of that person's identity. 1964 No 134 s 38O(3), (5), (9) 1986 No 131 s 10 1989 No 11 s 22 Miscellaneous provisions
105: Confidentiality of information
1: This section applies to—
a: information, data, and forecasts supplied or disclosed to, or obtained by,—
i: the Bank:
ii: a person appointed under section 99(2)﻿(b) section 101 section 119 under, or for the purposes of, or in connection with the exercise of powers conferred by, this Part:
b: information and data derived from or based upon information, data, and forecasts referred to in paragraph (a):
c: information relating to the exercise, or possible exercise, of the powers conferred by this Part.
2: Information, data, and forecasts to which this section applies shall not be published or disclosed by the Bank, any officer or employee of the Bank, or a person appointed under section 99(2)﻿(b) section 101 section 119
a: with the consent of the person to whom the information relates:
b: to the extent that the information is available to the public under any Act, other than the Official Information Act 1982 or is otherwise publicly available information
c: in statistical or summary form arranged in such a manner as to prevent any information published or disclosed from being identified by any person as relating to any particular person:
d: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty conferred or imposed on the Bank by this Act or any other legislation:
e: in connection with any proceedings for an offence against this Act:
f: under subpart 3
g: to any person whom the Bank is satisfied has a proper interest in receiving such information.
3: No information, data, or forecasts shall be published or disclosed pursuant to paragraph (f) or paragraph (g) of subsection (2) unless the Bank is satisfied that satisfactory provision exists to protect the confidentiality of the information, data, or forecasts published or disclosed.
4: No officer or employee of the Bank and no person appointed under section 99(2)﻿(b) section 101 section 119
5: No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pursuant to subsection (2)﻿(d) shall publish, disclose, or use such information, data, or forecasts except—
a: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty referred to in that paragraph; and
b: in accordance with such conditions as may be specified by the Bank.
6: No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pursuant to subsection (2)﻿(a) or subsection (2)﻿(g), shall publish, disclose, or use such information, data, or forecasts unless the publication, disclosure, or use is—
a: authorised by the Bank; or
b: necessary or desirable in connection with the exercise of any function or power conferred by any enactment.
7: A person referred to in subsection (7A) commits an offence if the person contravenes this section.
7A: The persons are—
a: any officer or employee of the Bank; or
b: a person appointed under section 99(2)﻿(b) section 101 section 119
7B: The penalty for an offence against this section is set out in section 156AA
8: Nothing in the Official Information Act 1982 1964 No 134 s 38P 1986 No 131 s 10 1989 No 11 s 23 Section 105(1)﻿(a)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(2) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(2)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(2)﻿(d) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 105(2)﻿(f) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 105(4) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(5)﻿(a) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 105(7) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(7A) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 105(7B) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
106: Procedure for obtaining warrants
1: An issuing officer (within the meaning of section 3 subpart 3
aaa: that any information or data published in a disclosure statement by a registered bank under section 81 section 83
aa: that a registered bank has failed to publish information that it is required to publish in a disclosure statement under section 81 section 83
a: that any information or data supplied to the Bank by a registered bank pursuant to section 93
b: that a registered bank has failed to comply with any requirement to supply information, data, or forecasts pursuant to section 93
ba: that any information or data supplied by a person to a registered bank under section 93B section 93C
bb: that a person has failed to comply with any requirement to supply information, data, or forecasts to a registered bank under section 93B section 93C
c: that a registered bank has failed to comply with section 95 may issue a warrant, in terms of section 107 section 99(2)﻿(b)
2: An issuing officer (within the meaning of section 3 subpart 3 section 113 section 117 section 107 section 101
3: Part 4 sections 118 119 1964 No 134 ss 38N(3), (5), 38O(6) 1986 No 131 s 10 1989 No 11 s 24 Section 106(1) amended 1 October 2012 section 297(4) Search and Surveillance Act 2012 Section 106(1) amended 21 August 2003 section 28(3) Reserve Bank of New Zealand Amendment Act 2003 Section 106(1)﻿(aaa) inserted 21 August 2003 section 28(1) Reserve Bank of New Zealand Amendment Act 2003 Section 106(1)﻿(aa) inserted 21 August 2003 section 28(1) Reserve Bank of New Zealand Amendment Act 2003 Section 106(1)﻿(ba) inserted 21 August 2003 section 28(2) Reserve Bank of New Zealand Amendment Act 2003 Section 106(1)﻿(bb) inserted 21 August 2003 section 28(2) Reserve Bank of New Zealand Amendment Act 2003 Section 106(2) amended 1 October 2012 section 297(5) Search and Surveillance Act 2012 Section 106(2) amended 21 August 2003 section 28(4) Reserve Bank of New Zealand Amendment Act 2003 Section 106(3) replaced 1 October 2012 section 297(6) Search and Surveillance Act 2012
107: Effect of warrant
1: Every warrant issued under section 106
a: enter and search the premises named in it:
b: inspect, remove, and take copies of documents or extracts from documents relating to the business, operation and management of the registered bank in the possession, or under the control, of any person:
c: where necessary, require any information recorded or stored in those documents to be reproduced in usable form.
2: The warrant shall continue in force for a period of 1 month or until the purpose for which it was granted has been satisfied, whichever is the lesser.
3: Every person named in the warrant shall, as soon as practicable after removing any documents or extracts from documents from any premises, supply a copy of the documents or extracts to the person from whom the documents or extracts were removed. 1964 No 134 ss 38N(4), (6), (8), 38O(7), (8), (10)
108: Effect of proceedings
1: Where any person commences any proceedings in any court in respect of the exercise of any powers conferred by section 99 section 101 section 102
2: This section shall apply notwithstanding the provisions of any other Act or any rule of law. 1964 No 134 ss 38N(11), 38O(14) 1986 No 131 s 10 1989 No 11 s 26
109: Effect of final decision that exercise of powers under section 99 unlawful
In any case where it is declared in a final decision given in any proceedings in respect of the exercise of powers conferred by section 99
a: the Bank shall ensure that forthwith after the decision of the court is given—
i: any information and data supplied by the registered bank pursuant to subsection (2)﻿(a)
ii: any documents or extracts from documents obtained pursuant to an inspection made under subsection (2)﻿(b)
iii: any information derived from or based upon any such information and data or documents or extracts is destroyed:
b: no information and data supplied by the registered bank pursuant to subsection (2)﻿(a) subsection (2)﻿(b)
i: admissible in evidence in any proceedings:
ii: used in connection with the exercise of any power conferred by section 113 section 117 1964 No 134 s 38N(12) 1986 No 131 s 10 1989 No 11 s 27 Section 109(a)﻿(i) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 109(a)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 109(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 109(b)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
110: Effect of final decision that exercise of powers under section 101 or section 102 unlawful
In any case where it is declared in a final decision given in any proceedings in respect of the exercise of powers conferred by section 101 section 102
a: the Bank shall ensure that forthwith after the decision of the court is given—
i: any information or data obtained pursuant to section 102(1)﻿(a)
ii: any documents produced for inspection pursuant to section 102(1)﻿(a)
iii: any documents or extracts from documents obtained pursuant to an inspection made under section 102(2)
iv: any information derived from or based upon any such information, documents, or extracts is destroyed:
b: no information or data obtained or documents produced for inspection pursuant to section 102(1)﻿(a)
i: admissible in evidence in any proceedings:
ii: used in connection with the exercise of any power conferred by section 113 section 117 1964 No 134 s 38O(15) 1986 No 131 s 10 1989 No 11 s 28 Section 110(b)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Reserve Bank may give directions Heading replaced 21 August 2003 section 29 Reserve Bank of New Zealand Amendment Act 2003
111: Bank may require registered bank to consult
Section 111 repealed 21 August 2003 section 29 Reserve Bank of New Zealand Amendment Act 2003
112: Bank may give advice and assistance
Section 112 repealed 21 August 2003 section 29 Reserve Bank of New Zealand Amendment Act 2003
113: Bank may give directions
1: The Bank may give a registered bank or an associated person of a registered bank a direction, in writing, if it has reasonable grounds to believe that—
a: the registered bank or associated person is insolvent or is likely to become insolvent; or
b: the registered bank or associated person is about to suspend payment or is unable to meet its obligations as and when they fall due; or
c: the affairs of the registered bank or associated person are being conducted in a manner prejudicial to the soundness of the financial system; or
d: the circumstances of the registered bank or associated person are such as to be prejudicial to the soundness of the financial system; or
e: the business of the registered bank has not been, or is not being, conducted in a prudent manner; or
f: any of the following persons has failed to comply with any requirement imposed by or under this Act or regulations made under this Act:
i: the registered bank:
ii: a director of the registered bank:
iii: in the case of an overseas incorporated registered bank, its New Zealand chief executive officer; or
g: any of the following persons has been convicted of an offence against this Act:
i: the registered bank:
ii: a director of the registered bank:
iii: in the case of an overseas incorporated registered bank, its New Zealand chief executive officer; or
h: the registered bank has failed to comply with a condition of its registration.
2: The Bank must obtain the consent of the Minister before giving a direction under this section.
3: A direction given under this section must state the grounds on which it is given.
4: The Bank may, with the consent of the Minister,—
a: amend or modify a direction; or
b: replace a direction with another direction; or
c: revoke a direction.
5: To avoid doubt, the Bank may exercise the power conferred by subsection (1) by giving a direction to a registered bank in respect of an associated person of that registered bank, and vice versa. Section 113 replaced 21 August 2003 section 30 Reserve Bank of New Zealand Amendment Act 2003
113A: Scope of directions
A direction given under section 113
a: consult with the Bank immediately, and from time to time, about the circumstances of the registered bank or of an associated person of the registered bank and the methods of resolving any difficulties facing the registered bank or the associated person; or
b: carry on business, or any part of its business, in accordance with the direction; or
c: cease to carry on its business, or any part of its business, in accordance with the direction; or
d: ensure that any officer or employee of the registered bank or associated person ceases to take part in the management or conduct of its business except with the permission of the Bank and so far as that permission extends; or
e: remove or replace any of the directors of an associated person of the registered bank; or
f: remove or replace its auditor or appoint an auditor approved by the Bank; or
g: take the action that is specified in the direction to address a breach of any condition of its registration; or
h: take the action that is specified in the direction to address any circumstances of financial difficulties; or
i: take any other action that may be specified in the direction. Section 113A inserted 21 August 2003 section 30 Reserve Bank of New Zealand Amendment Act 2003
113B: Power to remove, replace, or appoint directors
1: This section applies if the Bank has reasonable grounds to believe that—
a: any of the circumstances referred to in section 113(1)
b: it is necessary to remove, replace, or appoint a director of a registered bank or of an associated person of a registered bank.
2: If this section applies, the Bank may—
a: remove or replace a director of any registered bank or of an associated person of any registered bank; or
b: appoint any person as a director of any registered bank or of an associated person of any registered bank.
3: The Bank must—
a: obtain the consent of the Minister before exercising the power conferred by subsection (2); and
b: exercise that power by giving notice in writing to—
i: the director or the person concerned; and
ii: if applicable, the Registrar of Companies.
4: A notice given under subsection (3)﻿(b)﻿(ii) is sufficient compliance with section 159 section 152
5: This section has effect despite any enactment, rule of law, or the terms of the constitution of, or the instrument or contract creating, a registered bank or an associated person of a registered bank. Section 113B inserted 21 August 2003 section 30 Reserve Bank of New Zealand Amendment Act 2003
114: Offence to contravene directions
1: Every person commits an offence against this Act who, being a registered bank or associated person, without lawful justification or excuse, contravenes, or fails to comply with, a direction under section 113
2: Every person commits an offence against this Act who, being an officer or employee of a registered bank or of an associated person, without lawful justification or excuse, obstructs, hinders or prevents that registered bank or associated person giving effect to any direction given under section 113
3: The penalty for an offence against this section is set out in section 156AC 1964 No 134 s 38Q(11), (12) 1986 No 134 s 10 1989 No 11 s 35 Section 114(3) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
115: Offence to disclose giving of
direction
1: Subject to subsections (2) and (3), every person commits an offence against this Act who discloses that a direction has been given under section 113 section 113B
2: Nothing in subsection (1) applies to the disclosure or publication of the fact that a direction or notice
a: to any professional or financial adviser of the registered bank or associated person to which the direction or notice
b: with the written consent of the Bank, for the purposes of the sale or other disposition, or the possible sale or other disposition, of the whole or any part of the capital, or business undertaking, of the registered bank or associated person:
c: by the Bank or with the written consent of the Bank,—
i: to the public; or
ii: to any person who has a proper interest in knowing that the direction or notice
3: Nothing in subsection (1) applies to the disclosure or publication of the fact that a direction has been given requiring the actions set out in section 113A(d) section 113A(e) section 113A(f)
4: The penalty for an offence against this section is set out in section 156AA 1964 No 134 s 38Q(14), (15) 1986 No 131 s 10 1989 No 11 s 36 Section 115 heading amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(2) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(2)﻿(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(2)﻿(c)﻿(ii) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(3) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 115(4) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
116: Miscellaneous provisions with respect to directions and dispositions
1: A direction given under section 113
2: If the Bank has reasonable grounds to believe that 1 or more of the circumstances listed in section 113(1)
3: If the Bank grants an approval under subsection (2), the provisions of any enactment requiring any consent, licence, permission, or clearance or other authority do not apply as a condition of the legality or validity of the sale or other disposition.
4: For the purposes of this section, address for service section 81 Section 116 replaced 21 August 2003 section 31 Reserve Bank of New Zealand Amendment Act 2003 Statutory management of registered banks
117: Statutory management of registered banks and associated persons
1: The Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank,—
a: declare that—
i: any registered bank:
ii: any associated person of a registered bank— is subject to statutory management; and
b: appoint 1 or more persons as statutory manager or statutory managers of that registered bank or associated person for a specified period
1A: If any question arises as to whether, on the date on which a statutory manager was appointed, an act was done or a transaction was entered into or effected before or after the appointment, that act or transaction must, in the absence of proof to the contrary, be treated as having been done or entered into or effected, as the case may be, after the appointment of the statutory manager.
2: If an Order in Council is made under subsection (1), every subsidiary of a registered bank declared to be subject to statutory management, except any subsidiary declared to be a subsidiary to which the order does not apply, is subject to statutory management and the appointment of a statutory manager for the specified period in respect of that registered bank also applies to those subsidiaries.
2A: If a registered bank acquires a subsidiary after it has been declared to be subject to statutory management under subsection (1), that subsidiary is not subject to statutory management unless a further Order in Council is made declaring that subsidiary to be subject to statutory management.
3: Where a registered bank or an associated person of a registered bank that is declared to be subject to statutory management or a subsidiary of a registered bank that becomes subject to statutory management under subsection (2), is incorporated outside New Zealand or is an unincorporated body having its head office or principal place of business outside New Zealand, the provisions of this Part relating to statutory management shall apply to the property, rights, assets and liabilities relating to its New Zealand business.
4: Every Order in Council made under subsection (1) must specify the date on which, and the time at which, the Order in Council comes into force.
5: The date and time as specified must not be earlier than the date on which, and the time at which, the Order in Council is made.
6: A person appointed under subsection (1)﻿(b) has all the rights and powers conferred, and all the duties imposed, on a person appointed under section 101 section 101
a: section 102
b: section 103
c: section 104
7: Subsections (1)﻿(a) and (2) are subject to section 139J(4)
8: An Order in Council under this section is secondary legislation ( see Part 3 1964 No 134 s 38R(2), (3) 1986 No 131 s 10 1989 No 11 s 38 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 117(1)﻿(b) amended 21 August 2003 section 32(2) Reserve Bank of New Zealand Amendment Act 2003 Section 117(1A) inserted 21 August 2003 section 32(1) Reserve Bank of New Zealand Amendment Act 2003 Section 117(2) replaced 21 August 2003 section 32(3) Reserve Bank of New Zealand Amendment Act 2003 Section 117(2A) inserted 21 August 2003 section 32(3) Reserve Bank of New Zealand Amendment Act 2003 Section 117(4) inserted 26 April 1999 section 2 Reserve Bank of New Zealand Amendment Act 1999 Section 117(5) inserted 26 April 1999 section 2 Reserve Bank of New Zealand Amendment Act 1999 Section 117(6) inserted 21 August 2003 section 32(4) Reserve Bank of New Zealand Amendment Act 2003 Section 117(7) inserted 10 December 2013 section 4 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 117(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
118: Grounds on which registered bank may be declared to be subject to statutory management
1: The Bank must not make a recommendation under section 117
a: it is satisfied on reasonable grounds that 1 or more of the circumstances listed in section 113(1)﻿(a) to (e)
b: a registered bank or an associated person of a registered bank has failed to comply with a direction given under section 113
2: The Bank shall, as soon as practicable after the making of an Order in Council declaring a registered bank or associated person to be subject to statutory management, give written notice to the registered bank or associated person stating the grounds on which the recommendation made by the Bank was made. 1964 No 134 s 38R(4), (6) 1986 No 131 s 10 1989 No 11 s 39 Section 118(1) replaced 21 August 2003 section 33 Reserve Bank of New Zealand Amendment Act 2003
119: Advisory committee
1: Where an Order in Council is made under section 117 in writing to the statutory manager of that registered bank or associated person
2: The functions of an advisory committee shall be—
a: to advise the statutory manager on the conduct of the statutory management, including the exercise of the powers conferred by this Part:
b: to do such other things as may be specified by the Minister, from time to time, by notice in the Gazette
3: The members of an advisory committee shall be appointed for such period as is specified in the notice of appointment.
4: The Minister may, by notice in writing
5: The Minister may, by notice in writing
6: The Minister may terminate the appointment of a member of an advisory committee for inability to perform the functions of the office
7: A member of an advisory committee may resign office by notice in writing to the Minister.
8: A notice under subsection (1) or subsection (5) must specify the date on which it comes into force (which date must not be earlier than the date on which the Minister signed the notice).
9: Every notice given under this section must be published in the Gazette 1964 No 134 s 38S(1)–(8) 1986 No 131 s 10 1989 No 11 s 60 Section 119(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 119(4) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 119(5) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 119(6) amended 1 January 2002 section 70(1) Human Rights Amendment Act 2001 Section 119(8) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 119(9) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
120: Statutory manager to comply with directions of Bank
Subject to section 142 1964 No 134 s 38U 1986 No 131 s 10
121: Considerations affecting exercise of powers by statutory manager
1: In exercising the powers conferred by this Part a statutory manager of a registered bank shall have regard to—
a: the need to maintain public confidence in the operation and soundness of the financial system:
b: the need to avoid significant damage to the financial system:
c: to the extent not inconsistent with the considerations referred to in paragraphs (a) and (b), the need to resolve as quickly as possible the difficulties of that registered bank:
d: to the extent not inconsistent with the considerations referred to in paragraphs (a), (b) and (c), preserving the position of creditors and maintaining the ranking of claims of creditors:
e: the advice of the Bank.
2: Every statutory manager shall—
a: consult with the Bank, to the extent required by the Bank, as to the exercise of those powers:
b: provide the reports that the Bank may require as to the state of the affairs, business, and statutory management of the registered bank to persons specified by the Bank (including, but not limited to, the Bank) in the form and with the frequency that the Bank may require:
c: provide the information that an advisory committee appointed under section 119
3: A statutory manager may refuse to supply information to an advisory committee under subsection (2)﻿(c) if the Bank considers that the refusal is appropriate and gives its written approval to the statutory manager accordingly. 1964 No 134 s 38T 1986 No 131 s 10 1989 No 11 s 41 Section 121(2)﻿(b) replaced 21 August 2003 section 34(1) Reserve Bank of New Zealand Amendment Act 2003 Section 121(2)﻿(c) inserted 21 August 2003 section 34(1) Reserve Bank of New Zealand Amendment Act 2003 Section 121(3) inserted 21 August 2003 section 34(2) Reserve Bank of New Zealand Amendment Act 2003
121A: Statutory manager to avoid actions likely to have detrimental effect
1: A statutory manager who has reasonable cause to believe that an action he or she proposes to take is an action that is likely to have a detrimental effect on financial system stability in Australia must—
a: notify the Bank as soon as practicable; and
b: obtain the Bank's written consent before taking that action.
2: The statutory manager is not required to comply with subsection (1) if the statutory manager is satisfied that it is not reasonably practicable to do so in the circumstances, having regard to urgency or other similar constraint.
3: Where the Bank receives a notification under subsection (1), it must provide details of the notification to every prescribed Australian financial authority it considers to be relevant in the circumstances before granting written consent to the statutory manager.
4: The Bank is not required to comply with subsection (3) if the Bank is satisfied that it is not reasonably practicable to do so in the circumstances, having regard to urgency or other similar constraint.
5: No performance of a function or duty or exercise of a power is invalid by reason only of a failure to comply with the provisions of this section.
6: A statutory manager may consult a prescribed Australian financial authority about whether an action the statutory manager proposes to take is likely to have a detrimental effect on financial system stability in Australia. Section 121A inserted 15 December 2006 section 8 Reserve Bank of New Zealand Amendment Act 2006
122: Moratorium
1: Where a registered bank is declared under section 117
a: commence or continue any action or other proceedings, including proceedings by way of counterclaim, against that registered bank:
b: issue any execution, attach any debt, or otherwise enforce or seek to enforce any judgment or order obtained in respect of that registered bank:
c: take any steps to put that registered bank into liquidation or voluntary administration
d:
e: exercise or continue any power or rights under, or in pursuance of, any mortgage, charge, debenture, instrument, or other security over the property of that registered bank:
f: claim or recover, pursuant to any retention of title clause, hire purchase agreement, mortgage, lease, or security, any property in the possession of the registered bank:
g: determine or forfeit any tenancy,
h: exercise any right of set-off against that registered bank.
2: Notwithstanding subsection (1), an action or proceeding may be commenced or continued against a registered bank for the purpose of determining whether any right or liability exists if the leave of the statutory manager or the High Court is first obtained.
3: Notwithstanding subsection (1), a statutory manager may waive the application in whole or in part of that subsection (except paragraph (c)) to any creditor or class of creditors in respect of the whole or part of any claim of, or security held by, that creditor or class of creditors.
4: Subject to this Act, nothing in subsection (1) affects the existence of any security over the property of any registered bank or its priority over other debts.
5: Nothing in subsection (1)﻿(a), (b), and (d) to (h) limits or prevents any person from taking any of the actions specified in those paragraphs in relation to an obligation incurred or a right granted under a deed, instrument, trust, or contract entered into by a registered bank after the date on which, and the time at which, that registered bank was declared to be subject to statutory management.
6:
7: In the case of a netting agreement to which sections 310A to 310O sections 255 to 263
a: nothing in subsection (1)﻿(h) applies to any right of set-off provided for in the netting agreement; and
b: nothing in subsection (1) limits or prevents the exercise of any of the following rights under the netting agreement:
i: the termination, in accordance with the netting agreement, of all or any transactions that are subject to the netting agreement by reason of the occurrence of an event specified in the netting agreement, being an event (including the appointment of a statutory manager) occurring not later than the commencement of statutory management; or
ii: the taking of an account, in accordance with the netting agreement, of all money due between the parties to the netting agreement in respect of transactions affected by the termination; and
c: nothing in subsection (1) limits or prevents the exercise of any right referred to in paragraphs (d) to (f) of that subsection in respect of any property of that registered bank to the extent that the right is exercised to enforce, or to assist in enforcing, the due performance, by that registered bank, of obligations entered into by that registered bank under a recognised multilateral netting agreement (within the meaning of section 310A
8: In the case of netting under the rules of a designated settlement system
a: nothing in subsection (1) limits or prevents the exercise of any rights relating to the calculation of a netted balance under those rules; and
b: nothing in subsection (1) limits or prevents the exercise of any right referred to in paragraphs (d) to (f) of that subsection in respect of any property of that registered bank if the right that is exercised—
i: is provided under the rules of the designated settlement system
ii: has been granted to secure, or to assist in securing, the due performance, by that registered bank, of obligations entered into by that registered bank under those rules.
9: For the purpose of subsection (8), netted balance netting section 156L
9A: Nothing in subsection (1) limits or prevents the exercise of any rights to enforce a security interest over collateral to the extent that the security interest secures payment or performance of an obligation under or in relation to a qualifying derivative if—
a: the counterparties to the derivative are—
i: 2 qualifying counterparties; or
ii: a qualifying counterparty and an overseas person; and
b: before the exercise of the rights, the collateral is transferred or otherwise dealt with so as to be in the possession or under the control of—
i: the enforcing counterparty; or
ii: another person (who is not the grantor) on behalf of the enforcing counterparty, under the terms of an arrangement evidenced in writing; and
c: the rights are exercised after the specified time.
9B: See sections 122A to 122E
10: Subsection (1) is subject to section 139J(1) to (3) 1964 No 134 s 38V 1986 No 131 s 10 1989 No 11 s 42 Section 122(1)﻿(c) replaced 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 122(1)﻿(c) amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 122(1)﻿(d) amended 1 January 2008 section 364(1) Property Law Act 2007 Section 122(1)﻿(g) amended 1 January 2008 section 364(1) Property Law Act 2007 Section 122(5) replaced 21 August 2003 section 35(1) Reserve Bank of New Zealand Amendment Act 2003 Section 122(6) repealed 21 August 2003 section 35(1) Reserve Bank of New Zealand Amendment Act 2003 Section 122(7) inserted 26 April 1999 section 3(2) Reserve Bank of New Zealand Amendment Act 1999 Section 122(7) amended 3 December 2007 section 445 Insolvency Act 2006 Section 122(7)﻿(c) replaced 21 August 2003 section 35(2) Reserve Bank of New Zealand Amendment Act 2003 Section 122(8) inserted 21 August 2003 section 35(3) Reserve Bank of New Zealand Amendment Act 2003 Section 122(8) amended 24 November 2009 section 5 Reserve Bank of New Zealand Amendment Act 2009 Section 122(8)﻿(b)﻿(i) amended 24 November 2009 section 5 Reserve Bank of New Zealand Amendment Act 2009 Section 122(9) inserted 21 August 2003 section 35(3) Reserve Bank of New Zealand Amendment Act 2003 Section 122(9A) inserted 31 August 2019 section 4 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 122(9B) inserted 31 August 2019 section 4 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 122(10) inserted 10 December 2013 section 5 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
122A: Definitions of terms relating to qualifying derivatives
1: For the purposes of sections 122(9A) 122B 122C 122D 122E collateral
a: a financial product:
b: gold, silver, or platinum:
c: a document of title, a chattel paper, an investment security, money, a negotiable instrument, or an intangible (with terms and expressions used in this paragraph having the same meanings as in section 16(1)
d: if a person (an intermediary paragraphs (a) to (c)
e: the proceeds of property of a kind specified in any of paragraphs (a) to (d) default time derivative section 8(4) intermediated collateral paragraph (d) overseas person
a: a natural person who is not ordinarily resident in New Zealand; or
b: an entity (within the meaning of section 6(1) possession section 18 section 122B section 173(1)﻿(fc) and (fd) proceeds section 16(1) paragraphs (a) to (d) qualifying counterparty
a: a registered bank; or
b: the Accident Compensation Corporation (as continued by section 259
c: the Guardians of New Zealand Superannuation established under section 48
d: a specified operator; or
e: any prescribed entity; or
f: any other entity of a prescribed class qualifying derivative
a: the derivative is subject to—
i: a netting agreement to which sections 310A to 310O sections 255 to 263
ii: netting under the rules of a designated settlement system; and
b: the enforcing counterparty’s interest in the collateral is evidenced in writing security interest section 17 specified time
a: the default time; or
b: an earlier or a later time specified by the Bank in a notice issued under section 122C
2: For the purposes of the definition of overseas person, a natural person is ordinarily resident in New Zealand
a: is domiciled in New Zealand; or
b: is living in New Zealand and the place where that person usually lives, and has been living for the immediately preceding 12 months, is in New Zealand, whether or not that person has on occasions been away from New Zealand during that 12-month period. Section 122A inserted 31 August 2019 section 5 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
122B: Matters relating to possession or control of collateral
1: For the purposes of section 122(9A)﻿(b)
a: collateral must be taken not to be in the possession or under the control of the enforcing counterparty if,—
i: under the security interest, the grantor is free to deal with the collateral in the ordinary course of business until the enforcing counterparty’s interest in the collateral becomes fixed and enforceable; or
ii: regulations made under section 173(1)﻿(fc)
b: intermediated collateral must be taken to be in the possession of the enforcing counterparty if that counterparty is the person in whose name the intermediary maintains the account:
c: intermediated collateral must be taken to be under the control of the enforcing counterparty if subsection (3) applies:
d: collateral must be taken to be in the possession or under the control of the enforcing counterparty if regulations made under section 173(1)﻿(fc)
2: Subsection (1)﻿(a)﻿(i)
3: For the purposes of subsection (1)﻿(c)
a: the intermediary is not the grantor (but may be the enforcing counterparty or any other person); and
b: there is an agreement in force between the intermediary and 1 or more other persons, 1 of which is the enforcing counterparty or the grantor; and
c: the agreement has 1 or more of the following effects:
i: the person in whose name the intermediary maintains the account is not able to transfer or otherwise deal with the collateral:
ii: the intermediary must not comply with instructions given by the grantor in relation to the collateral without seeking the consent of the enforcing counterparty (or a person who has agreed to act on the instructions of the enforcing counterparty):
iii: the intermediary must comply, or must comply in 1 or more specified circumstances, with instructions (including instructions to debit the account) given by the enforcing counterparty in relation to the collateral without seeking the consent of the grantor (or any person who has agreed to act on the instructions of the grantor).
4: Subsections (1)﻿(a)﻿(i), (b), and (c), (2), and (3) section 122A(1) section 173(1)﻿(fc) and (fd)
5: The fact that a grantor retains a right of 1 or more of the following kinds does not by itself stop section 122(9A)﻿(b)
a: a right to receive and withdraw income in relation to the collateral:
b: a right to receive notices in relation to the collateral:
c: a right to vote in relation to the collateral:
d: a right to substitute other collateral that the parties agree is of equivalent value for the collateral:
e: a right to withdraw excess collateral:
f: a right to determine the value of collateral. Section 122B inserted 31 August 2019 section 5 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
122C: Bank may reduce or extend stay on exercise of rights to enforce security interest over collateral
1: This section and section 122D section 122(9A) A
2: The Reserve Bank may, before the default time, issue a notice that states that the rights referred to in section 122(9A)
3: The time that is specified may be—
a: before the default time; or
b: after the default time if the Bank is satisfied of all of the matters set out in section 122D
4: The notice may relate to all rights referred to in section 122(9A)
5: Despite section 140(2)﻿(b) Section 122C inserted 31 August 2019 section 5 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
122D: Matters Bank must be satisfied of under section 122C(3)﻿(b)
The matters referred to in section 122C(3)﻿(b)
a: A is able to meet all of the following liabilities as and when those liabilities become due and payable:
i: A’s liabilities under all netting agreements to which sections 310A to 310O sections 255 to 263
ii: A’s liabilities in respect of security interests over collateral to the extent that the security interests secure payment or performance of obligations under or in relation to qualifying derivatives:
iii: A’s liabilities that are subject to netting under the rules of a designated settlement system; and
b: A is able to pay its debts as they become due in the normal course of business; and
c: either—
i: A complies with the minimum capital requirements (if any) to which it is subject under conditions imposed under section 74
ii: there are satisfactory arrangements in place to ensure that A meets all of its liabilities referred to in paragraph (a) subparagraph (i) Section 122D inserted 31 August 2019 section 5 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
122E: Publication and status of notice under section 122C
1: The Bank must, as soon as practicable,—
a: publish any notice issued under section 122C
b: notify the issue of the notice in the Gazette
2: The notice may take effect at any time after it is published under subsection (1)﻿(a)
3:
4: The notice cannot be varied or revoked. Section 122E inserted 31 August 2019 section 5 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 122E(3) repealed 28 October 2021 section 3 Secondary Legislation Act 2021
123: Statutory manager may incorporate company under Companies Act
1993
1: Where a registered bank, which is a branch of a body corporate incorporated outside New Zealand or, as the case may be, any unincorporated body having its head office or principal place of business outside New Zealand, is declared to be subject to statutory management, the statutory manager may—
a: form and register a body corporate under the Companies Act 1993
b: subscribe for or acquire, as trustee for that body corporate or unincorporated body, as the case may be, all or any of the shares of the body corporate:
c: allot or issue
2: The Governor-General may, by Order in Council, on the advice of the Minister, given in accordance with a recommendation of the Bank, declare that the whole or any part of any property, rights, assets, and liabilities of any such branch relating to the business carried on by that branch shall vest in that body corporate on a date specified in the order and the property, rights, assets, and liabilities shall vest in that body corporate on the date specified.
3: Nothing in subsection (2) shall reduce, extinguish, or affect any obligation or liability of a body corporate incorporated outside New Zealand or, as the case may be, an unincorporated body having its head office or principal place of business outside New Zealand.
4: Every body corporate formed and registered under subsection (1) shall, for the purposes of this Part, be deemed to be a registered bank subject to statutory management as if that body corporate had been declared to be subject to statutory management pursuant to section 117
5: An Order in Council under subsection (2) is secondary legislation ( see Part 3 1964 No 134 s 38W(1), (3)–(5) 1986 No 131 s 10 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 123 heading amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 123(1)﻿(a) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 123(1)﻿(b) replaced 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 123(1)﻿(c) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 123(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
124: Vesting of property subject to security
1: An order may be made under section 123
2: Any property, rights or assets which are declared to vest pursuant to an order made under that section in the body corporate, being property, rights or assets subject to a security in favour of any other person, shall continue to be subject to that security. 1964 No 134 s 38W(6), (7) 1986 No 131 s 10
125: Proof of vesting
1: Neither the Registrar of Deeds nor the Registrar-General of Land, section 123
2: The presentation to any Registrar or other person of any instrument, whether or not comprising an instrument of transfer, by the company—
a: executed or purporting to be executed by the company; and
b: relating to any property held before the date specified in an Order in Council made pursuant to that section by that body corporate or unincorporated body; and
c: containing a recital that the property has become vested in the company, by virtue of the provisions of that section— shall, in the absence of evidence to the contrary, be sufficient proof that the property is vested in the company. 1964 No 134 s 38W(8), (9) 1986 No 131 s 10 Section 125(1) amended 12 November 2018 section 250 Land Transfer Act 2017
126: Prohibition against removal of assets
1: Except with the consent of the statutory manager, no person shall transfer or remove from New Zealand any property or assets of a registered bank which is declared to be subject to statutory management.
2: A person commits an offence if the person contravenes subsection (1).
2A: The penalty for an offence against this section is set out in section 156AC
3: Nothing in subsection (2) shall prevent the issue of an injunction or the making of any order to prevent any property or assets being removed from New Zealand.
4: Subsection (1) is subject to section 139J(1) to (3) 1964 No 134 s 38X 1986 No 131 s 10 1989 No 11 s 43 Section 126(2) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 126(2A) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 126(4) inserted 10 December 2013 section 6 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
127: Statutory manager may suspend payment of money owing
1: The statutory manager of a registered bank may, despite the terms of any contract,—
a: suspend in whole or in part the repayment of any deposit, or the payment of any debt, or the discharge of any obligation, to any person; and
b: cancel the obligation to provide funding to any person.
2: A suspension or cancellation by a statutory manager under subsection (1) does not constitute a breach or repudiation of any contract entered into by the registered bank with any person.
3: Nothing in subsection (1) shall authorise the suspension by the statutory manager of the repayment of any deposit, or the payment of any debt, or the discharge of any obligation , or the cancellation by the statutory manager of any obligation to provide funding , and the time at which,
4: Nothing in subsection (1) authorises the suspension by the statutory manager of the payment of any amount that would be included in the calculation of a netted balance in accordance with section 310C section 257 or section 156R
5: Subsection (1) is subject to section 139J(1) to (3) 1964 No 134 s 38Y 1986 No 131 s 10 1989 No 11 s 44 Section 127(1) replaced 21 August 2003 section 36(1) Reserve Bank of New Zealand Amendment Act 2003 Section 127(2) replaced 21 August 2003 section 36(1) Reserve Bank of New Zealand Amendment Act 2003 Section 127(3) amended 21 August 2003 section 36(2) Reserve Bank of New Zealand Amendment Act 2003 Section 127(3) amended 26 April 1999 section 4(1) Reserve Bank of New Zealand Amendment Act 1999 Section 127(4) inserted 26 April 1999 section 4(2) Reserve Bank of New Zealand Amendment Act 1999 Section 127(4) amended 3 December 2007 section 445 Insolvency Act 2006 Section 127(4) amended 21 August 2003 section 36(3) Reserve Bank of New Zealand Amendment Act 2003 Section 127(5) inserted 10 December 2013 section 7 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
128: Management of registered bank to vest in statutory manager
1: Subject to this Part, where a registered bank is declared to be subject to statutory management, the management of that registered bank shall, on and after the date , and at and from the time,
2: Where a registered bank is declared to be subject to statutory management, it shall not be lawful or competent for any director, manager, or other person to be engaged in the management or conduct of its business, or to act as an officer or as the agent, or servant, of the registered bank, except with the permission of the statutory manager and so far as that permission extends.
3: Subsection (2) is subject to section 139J(1) to (3) 1964 No 134 s 38Z 1986 No 131 s 10 1989 No 11 s 45 Section 128(1) amended 26 April 1999 section 5 Reserve Bank of New Zealand Amendment Act 1999 Section 128(3) inserted 10 December 2013 section 8 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
129: Powers of statutory manager
1: Subject to this Part, a statutory manager shall have all such powers, rights, and authorities as may be necessary for the purposes of this Part.
2: Without limiting subsection (1), a statutory manager has, and may exercise,—
a: all the powers, rights, and privileges that the registered bank has under any contract or otherwise:
b: in the case of a body corporate, all the powers of the members in general meeting and the board of directors of that body corporate:
c: in the case of a partnership, all the powers exercisable by a partner or partners.
3: Without limiting subsection (1), a statutory manager has, and may exercise, all of the powers conferred on a liquidator of a company by section 269 1964 No 134 s 38AB 1986 No 131 s 10 1989 No 11 s 46 Section 129(3) replaced 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994
130: Statutory manager empowered to carry on business of registered bank
Subject to this Part, a statutory manager of a registered bank may carry on all or any part of the business of the registered bank and has, and may exercise, in relation to the registered bank, all such powers, rights, and authorities as may be necessary to carry on that business. 1964 No 134 s 38AC 1986 No 131 s 10 1989 No 11 s 47
131: Statutory manager may pay creditors and compromise claims
Subject to this Part, a statutory manager of a registered bank shall, for the purposes of carrying on the business of the registered bank, have power to—
a: pay, in whole or in part, any creditor or class of creditors of the registered bank:
b: make any compromise or arrangement with any creditor, or person claiming to be a creditor, of the registered bank:
c: compromise all calls, debts and claims subsisting, or supposed to subsist, between the registered bank and any other person, and all questions relating to the assets of the registered bank, and give a complete or partial discharge. 1964 No 134 s 38AD 1986 No 131 s 10 1989 No 11 s 48
132: Sale of registered bank
1: Subject to this Part, the statutory manager of a registered bank may sell or otherwise dispose of the whole or any part of the business undertaking of the registered bank to such person and upon such terms and conditions as the statutory manager thinks fit.
2: Without limiting any other powers of the statutory manager, for the purposes of subsection (1), the statutory manager shall have power to—
a: form and register a body corporate under the Companies Act 1993
b: subscribe for or acquire
c: transfer to that body corporate the whole or any part of the business undertaking of the registered bank:
d: allot or issue
e: sell all or any of the shares, or the whole or any part of the business undertaking, of that body corporate to such person and upon such terms and conditions as the statutory manager thinks fit.
3: The statutory manager shall not sell or otherwise dispose of—
a: the whole or any substantial part of the business undertaking of a registered bank pursuant to subsection (1):
b: any of the shares of any body corporate formed and registered pursuant to subsection (2)﻿(a):
c: the whole or any substantial part of the business undertaking of any body corporate formed and registered pursuant to subsection (2)﻿(a),— unless the statutory manager has consulted with the Bank and the Bank, with the consent of the Minister, has given approval in writing to the sale or other disposition and the terms and conditions of it. 1964 No 134 s 38AE(1)–(3) 1986 No 131 s 10 1989 No 11 s 50(1), (2) Section 132(2)﻿(a) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 132(2)﻿(b) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 Section 132(2)﻿(d) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994
133: Consents not required under other Acts
The provisions of any enactment or agreement requiring any consent, licence, permission, clearance or other authority shall not have any application in respect of—
a: the sale or other disposition of the whole or any part of the business undertaking of a registered bank pursuant to section 132(1)
b: the sale or other disposition pursuant to section 132(2)﻿(e)
c: the sale or other disposition pursuant to section 132(2)﻿(e) being a sale or disposition to which the Bank has, with the consent of the Minister, given its approval under section 132(3) 1964 No 134 s 38AE(4) 1986 No 131 s 10 1989 No 11 s 50(3)
134: Sale of property or assets subject to a security
1: A statutory manager may—
a: sell or otherwise dispose of any property or assets of a registered bank pursuant to section 132(1)
b: sell or otherwise dispose of any property or assets of a registered bank to any body corporate formed and registered pursuant to section 132(2)﻿(a)
c: sell or otherwise dispose of any shares, or property or assets, of a body corporate formed and registered pursuant to section 132(2)﻿(a) notwithstanding the existence, or the terms and conditions, of any security over the property or those assets in favour of any other person.
2: If the statutory manager of a registered bank sells or otherwise disposes of any property or assets of that bank under section 132(1)
3: Where a statutory manager of a registered bank sells or otherwise disposes of any property or assets of that registered bank to any body corporate formed and registered pursuant to section 132(2)﻿(a)
4: If a statutory manager of a registered bank sells or otherwise disposes of any shares in a body corporate formed and registered under section 132(2)﻿(a)
5: If a statutory manager of a registered bank sells or otherwise disposes of any property or assets of a body corporate formed and registered under section 132(2)﻿(a)
6: The kind of security interest referred to in this section is a security interest that—
a: is over all or any part of the bank's or body corporate's (as the case may be) accounts receivable and inventory or all or any part of either of them; and
b: is not a purchase money security interest that has been perfected at the time specified in section 74
c: is not a security interest that has been perfected under the Personal Property Securities Act 1999 at the time the registered bank was declared to be subject to statutory management and that arises
d: is not a security interest referred to in subsection (8)
7: In this section, account receivable inventory new value purchase money security interest proceeds security interest Personal Property Securities Act 1999
8: For the purposes of subsection (6)﻿(d)
a: the counterparties to the derivative are—
i: 2 qualifying counterparties; or
ii: a qualifying counterparty and an overseas person; and
b: before the exercise of rights to enforce the security interest, the collateral is transferred or otherwise dealt with so as to be in the possession or under the control of—
i: the enforcing counterparty; or
ii: another person (who is not the grantor) on behalf of the enforcing counterparty, under the terms of an arrangement evidenced in writing.
9: Terms and expressions defined in section 122A subsection (8)
10: Section 122B subsection (8)﻿(b) section 122(9A)﻿(b) subsection (8)﻿(b) 1964 No 134 s 38AE(5)–(9) 1986 No 131 s 10 1989 No 11 s 51 Section 134(2) replaced 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 134(4) replaced 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 134(5) replaced 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 134(6) inserted 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 134(6)﻿(b) amended 3 December 2007 section 445 Insolvency Act 2006 Section 134(6)﻿(c) amended 3 December 2007 section 445 Insolvency Act 2006 Section 134(6)﻿(d) inserted 31 August 2019 section 6(1) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 134(7) inserted 1 May 2002 section 191(1) Personal Property Securities Act 1999 Section 134(8) inserted 31 August 2019 section 6(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 134(9) inserted 31 August 2019 section 6(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 134(10) inserted 31 August 2019 section 6(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
135: Proof of transactions
1: The presentation to any Registrar of Deeds, or the Registrar-General of Land section 132(2)﻿(a)
a: executed or purporting to be executed by or on behalf of the registered bank or company; and
b: containing a recital that the transfer or other disposition of the property or assets of the registered bank, or the shares in, or property or assets of, the company, is made pursuant to section 132 shall, in the absence of evidence to the contrary, be sufficient proof that the transfer or other disposition is made under the authority of that section.
2: The presentation to any Registrar of Deeds, or the Registrar-General of Land section 132(2)﻿(a) 1964 No 134 s 38AE(10), (11) 1986 No 131 s 10 1989 No 11 s 72 Section 135(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 135(2) amended 12 November 2018 section 250 Land Transfer Act 2017
136: Liquidation of registered banks
1: Subject to this Part, a statutory manager of a registered bank may, with the prior approval of the Bank,—
a: in the case of a registered bank which may be put into liquidation under Companies Act 1993 that Act
b: in the case of a registered bank which is an individual, petition under the Insolvency Act 2006
c: in the case of a registered bank constituted under any other Act, take such steps as are provided for in that Act for the winding up, liquidation, or dissolution of that registered bank.
2: The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of a statutory manager of a registered bank, not being a registered bank referred to in subsection (1), order that the registered bank to which the recommendation relates shall be wound up in such manner as may be specified in the order and, in any such case, the registered bank shall be wound up in the manner specified.
3: A statutory manager shall not make a recommendation under subsection (2) without the prior approval of the Bank.
4: Nothing in this section limits or affects any other enactment which provides for the winding up, liquidation, or dissolution of any body corporate or any class of body corporate.
5: An Order in Council under subsection (2) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 136 replaced 1 July 1994 section 2 Reserve Bank of New Zealand Amendment Act 1993 Section 136(1)﻿(a) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 136(1)﻿(b) amended 3 December 2007 section 445 Insolvency Act 2006 Section 136(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
137: Provisions applying where liabilities included in sale
1: Where all or any part of any liability of a registered bank is included in the sale or other disposition of the business undertaking of that registered bank, or any part of it, pursuant to section 132
a: the registered bank shall, as from the date of such sale or other disposition, be relieved from all its obligations in respect of that liability, or part of it; and
b: the person entitled to performance in respect of that liability shall be entitled to enforce performance of that liability or part of it against the person to whom the business undertaking is sold or otherwise disposed of in the same manner and to the same extent as that person was entitled to enforce performance against the registered bank; and
c: the inclusion of part of a liability shall not relieve the registered bank from any obligation in respect of any part of the liability not included in the sale or other disposition.
2: Where all or any part of any liability of a body corporate formed and registered under section 123(1) 1964 No 134 s 38AG 1986 No 131 s 10 1989 No 11 s 53
138: Power to trace property improperly disposed of
1: In any case where, whether before or after the passing of this Act,—
a: any property has been acquired by a person in circumstances which cause it to be just and equitable that that person should hold it upon trust for any registered bank that has been declared to be subject to statutory management; or
b: any property has been improperly disposed of, whether or not the property has become subject to a trust,— the court may, if it thinks fit, make an order—
c: that the property be transferred or delivered to the statutory manager:
d: that any person who acquired or received the property, or his or her administrator, shall pay to the statutory manager a sum not exceeding the value of that property.
2: For the purpose of giving effect to any such order, the court may make such further order as it thinks fit.
3: No order made pursuant to this section shall deprive any other person of any estate or interest in the property if the estate or interest was acquired in good faith and for valuable consideration.
4: Nothing in this section restricts the operation of Companies Act 1993 1989 No 11 s 54 Section 138(4) replaced 1 July 1994 section 3 Reserve Bank of New Zealand Amendment Act 1993 Section 138(4) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
139: Application of certain provisions of Companies Act 1993
1: Sections 275 292 to 301 , 310G 310I 312
a: the registered bank was a company in liquidation under that Act; and
b: the statutory manager of the registered bank was the liquidator of the company; and
c: the date on which, and the time at which, the registered bank became subject to statutory management was the date on which, and the time at which, the liquidation commenced.
2: Nothing in section 263 section 312
3: To avoid doubt, the reference in section 275(4) clause 1(a) section 148(1) Section 139 replaced 1 July 1994 section 4 Reserve Bank of New Zealand Amendment Act 1993 Section 139(1) amended 20 September 2007 section 4(1) Reserve Bank of New Zealand Amendment Act 2007 Section 139(1) amended 26 April 1999 section 6(1) Reserve Bank of New Zealand Amendment Act 1999 Section 139(1)﻿(c) replaced 26 April 1999 section 6(2) Reserve Bank of New Zealand Amendment Act 1999 Section 139(3) inserted 20 September 2007 section 4(2) Reserve Bank of New Zealand Amendment Act 2007 Interpretation relating to covered bonds Heading inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139A: Interpretation
In this section and in sections 139B to 139J cover pool
a: are owned by the relevant covered bond SPV; and
b: secure the obligations of that SPV under the covered bond programme cover pool monitor section 139I(1) covered bond
a: it represents an unsecured obligation of the issuer; and
b: the principal and interest owing under the bond, note, or other debt security are guaranteed by a covered bond SPV; and
c: the obligations under that guarantee are secured by assets that are owned by that SPV covered bond programme covered bond SPV section 139B issuer section 139C own owned owner registered covered bond programme section 139G SPV Section 139A inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139B: Meaning of covered bond SPV
In sections 139A to 139J covered bond SPV
a: is, or will be, the owner of an asset that has been, or will be, sold, assigned, or otherwise transferred to it by, or on behalf of, an issuer or an associated person of an issuer; and
b: has granted, or may grant, a security interest in that asset for the benefit of the secured creditors under the covered bond programme; and
c: carries on a business of acting as covered bond guarantor under the covered bond programme (including any business incidental to that purpose); and
d: (other than as described in paragraph (c)) does not carry on any other kind of business. Section 139B inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139C: Meaning of issuer
1: For the purposes of sections 139A to 139J issuer
a: means—
i: a registered bank that issues or intends to issue covered bonds, or guarantees such covered bonds:
ii: an entity, or a member of a class of entities, specified in regulations made under section 139F(3)﻿(a)
b: includes a bank referred to in paragraph (a)﻿(i) that—
i: has had its registration cancelled under section 77
ii: has a registered covered bond programme.
2: However, if an issuer ( issuer A issuer B sections 139A to 139J
3: To avoid doubt, subsection (2) does not affect the rights or obligations of issuer A before the transfer. Section 139C inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Registration of covered bond programmes Heading inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139D: Register of registered covered bond programmes
1: The Bank must keep a public register of registered covered bond programmes.
2: The Bank—
a: must determine the form and content of the register and may amend that form and content as it considers necessary; and
b: may, based on the assets in, or that may be included in, the relevant cover pool, designate registered covered bond programmes to particular classes of registered covered bond programmes, as specified by the Bank.
3: The Bank must take all reasonable steps to ensure that the information contained in the public register is available to members of the public at all reasonable times.
4: A registered covered bond programme must remain on the register despite—
a: any defects in the registration process; or
b: any failure by an issuer to comply with any of the requirements of section 139H
5: However, despite subsection (4), the Bank may remove a registered covered bond programme from the register—
a: if—
i: all obligations under that programme have been fulfilled; or
ii: the security interest over the cover pool has been enforced; or
iii: the issuer has requested the removal; and
b: if, in all cases, the Bank has received evidence, acceptable to the Bank, that both the relevant bond trustee and security trustee consent to the removal.
6: To avoid doubt,—
a: registration occurs at the time and date that the Bank enters the details relating to the covered bond programme on the register:
b: a defect in the registration process of a covered bond programme does not affect a person's ability to enforce his, her, or its rights in relation to that covered bond programme or any covered bond issued under that covered bond programme:
c: the failure of an issuer to register a covered bond programme or to comply with any requirement under section 139H Section 139D inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139E: Requirement, and application, for registration of covered bond programme
1: Only an issuer may apply to the Bank to register a covered bond programme.
2: An application must be—
a: made in the manner specified by the Bank; and
b: accompanied by a fee (if any), as determined by the Bank with the approval of the Minister
3: The issuer must provide the Bank with any information that the Bank requires to enable it to determine the application.
4: An issuer must not issue, or permit the issue of, a covered bond other than under a registered covered bond programme.
5: An issuer commits an offence if, without lawful justification or excuse, the issuer—
a: issues a covered bond other than under a registered covered bond programme; or
b: permits the issue of a covered bond other than under a registered covered bond programme; or
c: provides information for the purposes of an application that is false or misleading in any material particular.
6: The penalty for an offence against this section is set out in section 156AB
7: A determination under subsection (2)﻿(b) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 139E inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 139E(2)﻿(b) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 139E(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
139F: Determination of application for registration of covered bond programme
1: The Bank must not register a covered bond programme unless it is satisfied that the requirements set out in subsection (2) are met.
2: The requirements are as follows:
a: that the cover pool assets are, or will be, owned by an identified covered bond SPV that—
i: is a company (within the meaning given in section 2(1)
ii: is a person or partnership specified in regulations made under subsection (3); and
b: that a cover pool monitor has been appointed; and
c: that a register of cover pool assets will be maintained; and
d: that the covered bond programme specifies, or refers to documents that specify, procedures and internal controls that ensure—
i: the up-to-date and accurate keeping of that register; and
ii: that the assets in the cover pool remain consistent with any asset class designation under section 139D(2)﻿(b)
e: that the covered bond programme specifies a test, or tests, to determine, in accordance with any procedures specified in that programme, whether the value of the cover pool assets is at least equal to the principal amount outstanding on the covered bonds; and
f: that the covered bond programme provides for the covered bond SPV to perform, or arrange to have performed on its behalf, the requirements of section 139H(1)﻿(a) and (b)﻿(i)
i: in the event that any amounts become due and payable by the covered bond SPV under the covered bond programme; and
ii: until the security interest over the cover pool assets has been enforced; and
g: that the issuer is in compliance with all other requirements imposed in relation to covered bonds by, or under,—
i: section 74
ii: regulations made under subsection (3).
3: The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations—
a: specifying entities, or classes of entities, for the purposes of section 139C(1)﻿(a)﻿(ii)
b: specifying persons or partnerships, or classes of persons or partnerships, for the purposes of subsection (2)﻿(a)﻿(ii):
c: prescribing additional requirements for the purposes of subsection (2)﻿(g)﻿(ii):
d: prescribing conditions in relation to the entities, persons, or partnerships referred to in paragraphs (a) and (b).
4: Regulations under subsection (3) are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 139F inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 139F(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
139G: Bank must approve or decline application
1: Having considered an application made under section 139E(2)
2: If the Bank is satisfied that an issuer meets the requirements of section 139F(2)
3: The Bank must otherwise decline the application.
4: If the Bank approves the application, it must give its decision to the issuer—
a: in writing; and
b: within 60 working days after receiving all of the information required by the Bank to determine the application.
5: If the Bank proposes to decline the application, the Bank must, within 60 working days after receiving all of the information required to determine the application,—
a: give the issuer notice, in writing, of that proposed decision and the reasons for it; and
b: invite the issuer to provide, within 10 working days after the date of the notice, submissions or further information in response to that proposed decision; and
c: take account of any submissions and further information it receives from the issuer; and
d: give its final decision to the issuer—
i: in writing; and
ii: within 5 working days after the expiry of the time specified in paragraph (b) (whether or not the Bank receives any submissions or further information).
6: Nothing in this section prevents the Bank and the issuer from agreeing to modify the time limits specified in subsections (4) and (5). Section 139G inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139H: Requirements relating to registered covered bond programmes
1: Every issuer must, in relation to a registered covered bond programme,—
a: ensure that the test or tests specified in section 139F(2)﻿(e)
b: ensure that—
i: a register of cover pool assets is maintained; and
ii: it complies with the procedures and internal controls referred to in section 139F(2)﻿(d)
c: notify the Bank—
i: of every covered bond issued; and
ii: of any material changes to the registered covered bond programme that would be likely to result in the registered covered bond programme failing to comply with the requirements of section 139F(2)
iii: if the covered bond programme or the cover pool no longer complies with any asset class designation under section 139D(2)﻿(b)
d: provide the Bank with any further information it requests in relation to the covered bond programme; and
e: ensure that—
i: the registered covered bond programme complies with the requirements of section 139F(2)
ii: the reports referred to in section 139I(1)﻿(c)﻿(ii)
iii: the Bank is provided with a copy of—
A: every report prepared by the cover pool monitor in accordance with section 139I(1)﻿(c)﻿(iii) and (iv)
B: if requested by the Bank, any other report prepared by the cover pool monitor in accordance with section 139I(1)﻿(c)﻿(ii)
2: However, if any amounts become due and payable by the covered bond SPV under the covered bond programme,—
a: the issuer is not required to comply with subsection (1); and
b: the covered bond SPV must provide the Bank with any information it requests in relation to that covered bond programme.
3: If an issuer fails to comply with any of the requirements of subsection (1), the Bank may, by notice in writing to the issuer, require the issuer to take such corrective action as the Bank may specify in the notice.
4: An issuer commits an offence if the issuer, without lawful justification or excuse, fails to comply with a notice issued under subsection (3).
5: The penalty for an offence against this section is set out in section 156AB Section 139H inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Cover pool monitor Heading inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139I: Cover pool monitor
1: A cover pool monitor
a: independent of the issuer; and
b: 1 or more of the following:
i: a licensed auditor under the Auditor Regulation Act 2011
ii: (if the issuer ensures that appropriate arrangements are in place to ensure that the functions of the cover pool monitor are performed by, or under the supervision of, a licensed auditor) a registered audit firm under the Auditor Regulation Act 2011
iii: a member of any other class of persons or firms that has been approved by the Bank; and
c: required, under its contract of appointment, to—
i: assess, at a given point in time, and in accordance with any agreed procedures specified in the covered bond programme,—
A: the arithmetical accuracy of the tests carried out in accordance with section 139H(1)﻿(a)
B: the issuer's compliance with the requirements of section 139H(1)﻿(b)
ii: provide the issuer with reports on the matters required under paragraph (c)﻿(i) at intervals of not more than 12 months; and
iii: provide reports at intervals of not more than 3 months if the cover pool monitor is not satisfied—
A: as to the arithmetical accuracy of the tests carried out in accordance with section 139H(1)﻿(a)
B: that the issuer has complied with the requirements of section 139H(1)﻿(b)
iv: if subparagraph (iii) applies, continue to provide 3-monthly reports until the cover pool monitor is satisfied that the issuer has remedied those matters; and
v: report on any other matters required by regulations made under subsection (2).
2: The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations specifying additional matters that the cover pool monitor must be required to report on, and the information to be provided with such a report, for the purposes of subsection (1)﻿(c)﻿(v).
3: For the purposes of this section, independent
4: However, to avoid doubt, a person's appointment as auditor does not affect his, her, or its independence.
5: Regulations under subsection (2) are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 139I inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 139I(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Statutory management, etc, of issuer Heading inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
139J: Limitation on application of statutory management, etc, provisions to covered bond SPV
1: Subsections (2) and (3) apply in relation to the following provisions:
a: sections 122(1) 126(1) 127(1) 128(2)
b: section 248
c: sections 42(1) 43(1) 44(1) 45(2)
2: Nothing in a provision referred to in subsection (1)—
a: prevents the transfer of the legal title to assets in a cover pool from an issuer to a covered bond SPV:
b: prevents the transfer, under a contract, of any documentation or data relating to assets in a cover pool from the issuer to a covered bond SPV or a person acting on behalf of that SPV:
c: prevents a covered bond SPV, or a person acting on behalf of that SPV, from exercising a power of attorney granted by the issuer in relation to assets in a cover pool:
d: affects the issuer's obligation to pay moneys collected on behalf of, and held on trust for, a covered bond SPV, to that SPV:
e: prevents the enforcement of any of the above rights by, or on behalf of, a covered bond SPV.
3: However, subsection (2) applies only if—
a: the covered bond SPV is the owner of the assets in the cover pool; and
b: the covered bond programme is registered under section 139G
4: A covered bond SPV is not—
a: an associated person for the purposes of section 117(1)﻿(a) section 38(1)﻿(a) section 170(1)﻿(b)
b: a subsidiary for the purposes of section 117(2) section 38(2) section 170(2)
c: a related company for the purposes of section 271 Section 139J inserted 10 December 2013 section 9 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Miscellaneous provisions
140: Application of this Part to joint statutory managers, associated persons, and subsidiaries
1: Where an Order in Council is made under section 117
2: For the purposes of this Part, unless the context otherwise requires,—
a: references to a statutory manager shall, where 2 or more persons are appointed as statutory managers include references to those statutory managers:
b: where an associated person of a registered bank is declared to be subject to statutory management, or a subsidiary of a registered bank becomes subject to statutory management under section 117(2) sections 119 to 139 sections 141 to 156 1964 No 134 s 38R(11), (12) 1986 No 131 s 10 1989 No 11 s 56
141: Termination of appointment of statutory manager
1: The Minister may, by notice in writing to the statutory manager of a registered bank that is given in accordance with the recommendation of the Bank, terminate the appointment of that statutory manager for inability to perform the functions of the office or for bankruptcy or if the Minister is of the opinion that the statutory manager has failed to perform the statutory manager's duties satisfactorily.
2: A statutory manager of a registered bank may resign office by notice in writing to the Minister.
3: Where the appointment of a statutory manager is terminated under subsection (1) or a statutory manager resigns office, or dies, the Minister may, by notice published in the Gazette
3A: Where a notice is published in the Gazette the notice
4: A statutory manager continues in office until his or her successor is appointed despite—
a: his or her resignation; or
b: his or her period of appointment having expired.
5: A registered bank continues to be subject to statutory management under section 117
a: has had his or her appointment terminated, or
b: has resigned from office; or
c: has died, or
d: has ceased to hold office because of the expiry of his or her period of appointment.
6: The Bank must publish a notice given by the Minister under this section in the Gazette 1964 No 134 s 38AH 1986 No 131 s 10 1989 No 11 s 57 Section 141(1) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 141(3) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 141(3A) inserted 8 April 1992 Reserve Bank of New Zealand Amendment Act 1992 Section 141(3A) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 141(4) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 141(5) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 141(6) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
142: Statutory manager may apply to High Court for directions
1: A statutory manager of a registered bank may apply to the High Court for directions concerning the business or property of the registered bank or the management or administration of that business or property, or the exercise of any powers under this Part.
2: On any application under subsection (1) the High Court may give directions concerning the business or property of the registered bank, or the management or administration of that business or property, or the exercise of any powers under this Part and every person shall be bound by any such directions. 1964 No 134 s 38AI 1986 No 131 s 10 1989 No 11 s 58
143: Prior winding up, liquidation, or receivership to cease
1: Where a registered bank, or any subsidiary or associated person of a registered bank, becomes subject to statutory management, and that registered bank, subsidiary, or associated person is already being wound up or is already in liquidation, receivership, or voluntary administration,—
a: the winding up, liquidation, receivership, or voluntary administration of that registered bank, subsidiary, or associated person must, for so long as it continues to be subject to statutory management, cease; and
b: the person appointed as liquidator, receiver, or administrator must be discharged.
2: Where the statutory management of any registered bank, subsidiary, or associated person referred to in subsection (1) is terminated by, or as the result of the making of, an Order in Council under section 144(1) or voluntary administration
3: Where any liquidation, receivership, or voluntary administration revives under subsection (2), the person specified in the order as such must be the liquidator, receiver, or administrator of that registered bank, subsidiary, or associated person for the time being. 1989 No 11 s 61 Section 143 heading amended 1 July 1994 section 6 Reserve Bank of New Zealand Amendment Act 1993 Section 143(1) replaced 1 November 2007 section 41 Companies Amendment Act 2006 Section 143(2) amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 143(3) replaced 1 November 2007 section 41 Companies Amendment Act 2006
143A: Continuation of statutory management
1: This section applies to a registered bank, an associated person of a registered bank, or a subsidiary of a registered bank, that has been removed from the New Zealand register under section 317
2: If a person to whom this section applies is restored to the New Zealand register under section 328 Section 143A inserted 21 August 2003 section 37 Reserve Bank of New Zealand Amendment Act 2003
144: Termination of statutory management
1: The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, declare that—
a: any registered bank:
b: any associated person of a registered bank:
c: any subsidiary of a registered bank,— subject to statutory management, shall cease to be subject to statutory management.
2: Any registered bank, or associated person of a registered bank, or subsidiary of a registered bank shall cease to be subject to statutory management if that registered bank, or associated person, or subsidiary, as the case may be, is put into liquidation on the application of the statutory manager.
3: Any person who is affected by the making of an Order in Council under section 117
4: Where an Order in Council is made under subsection (1) or, a registered bank, associated person, or subsidiary is put into liquidation
a: that person shall cease to be subject to statutory management at the specified time
b: the appointment of any statutory manager appointed in respect of that person shall terminate at the specified time
c: the appointment of any person as a member of an advisory committee under section 119 at the specified time
5: For the purposes of subsection (4) specified time
a: in any case where an Order in Council is made pursuant to subsection (1), the date and time
b: in any case where a liquidator is appointed, the date and time
6: Where an Order in Council is made under subsection (1) declaring that a registered bank shall cease to be subject to statutory management,—
a: every subsidiary of that registered bank, except any subsidiary specified in the order, shall cease to be subject to statutory management on the same date as that specified as the date upon which , and at the same time as that specified as the time at which,
b: the appointment of any person appointed as a statutory manager of every such subsidiary shall terminate on the date and at the time
c: the appointment of any person appointed as a member of an advisory committee under section 119 and at the time
7: An Order in Council under subsection (1) is secondary legislation ( see Part 3 1964 No 134 s 38AJ 1986 No 131 s 10 1989 No 11 s 62 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 144(2) replaced 1 July 1994 section 7(1) Reserve Bank of New Zealand Amendment Act 1993 Section 144(4) amended 1 July 1994 section 7(2) Reserve Bank of New Zealand Amendment Act 1993 Section 144(4)﻿(a) amended 26 April 1999 section 7(a) Reserve Bank of New Zealand Amendment Act 1999 Section 144(4)﻿(b) amended 26 April 1999 section 7(a) Reserve Bank of New Zealand Amendment Act 1999 Section 144(4)﻿(c) amended 26 April 1999 section 7(a) Reserve Bank of New Zealand Amendment Act 1999 Section 144(5) amended 26 April 1999 section 7(b) Reserve Bank of New Zealand Amendment Act 1999 Section 144(5)﻿(a) amended 26 April 1999 section 7(c) Reserve Bank of New Zealand Amendment Act 1999 Section 144(5)﻿(b) replaced 1 July 1994 section 7(3) Reserve Bank of New Zealand Amendment Act 1993 Section 144(5)﻿(b) amended 26 April 1999 section 7(c) Reserve Bank of New Zealand Amendment Act 1999 Section 144(6)﻿(a) amended 26 April 1999 section 7(d) Reserve Bank of New Zealand Amendment Act 1999 Section 144(6)﻿(b) amended 26 April 1999 section 7(e) Reserve Bank of New Zealand Amendment Act 1999 Section 144(6)﻿(c) amended 26 April 1999 section 7(e) Reserve Bank of New Zealand Amendment Act 1999 Section 144(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
145: Obligations incurred by statutory manager
1: Any obligations incurred by a statutory manager of a registered bank in the course of his or her duties as statutory manager are incurred by that statutory manager on behalf of the registered bank, and the statutory manager does not incur personal liability for those obligations.
2: In the winding up or liquidation of a registered bank or an associated person of a registered bank or a subsidiary of a registered bank, all amounts required to satisfy obligations incurred by the statutory manager on behalf of the registered bank, associated person, or subsidiary must be paid in priority to all other debts. Section 145 replaced 21 August 2003 section 38 Reserve Bank of New Zealand Amendment Act 2003
146: Indemnity
Section 146 repealed 21 August 2003 section 39 Reserve Bank of New Zealand Amendment Act 2003
147: Registered bank not entitled to be informed about exercise of powers
Except as otherwise provided in this Part, no registered bank, associated person, or subsidiary, and no director, officer, or employee of a registered bank, associated person, or subsidiary, has a right to be consulted or informed as to the exercise, or possible exercise, of any powers conferred by this Part or to make representations to any person as to the exercise, or possible exercise, of those powers. 1989 No 11 s 64
148: Expenses of statutory management
1: All costs, charges, and expenses properly incurred by a statutory manager or a member of an advisory committee in the exercise of the manager's or the member's functions and powers under this Part (including such remuneration as may be approved by the Bank) shall be payable out of the property of the registered bank or associated person of the registered bank or a subsidiary of the registered bank
2: The statutory manager may, with the approval of the Bank, apportion the costs, charges, and expenses referred to in subsection (1) between the registered bank and any associated person or subsidiary of the registered bank that is also subject to statutory management in the amounts that the statutory manager considers just and equitable.
3: This section prevails over section 145 1964 No 134 s 38AL 1986 No 131 s 10 1989 No 11 s 65 Section 148(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 148(2) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 148(3) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
149: Advances to statutory manager and members of advisory committee
1: With the consent of the Minister, there may be advanced out of a
2: All money so advanced to that person shall be refunded to the Crown out of money payable to that person, and the Crown shall have all the rights of the person to whom the advance was made to receive and recover that money. Money refunded to the Crown shall be credited upon receipt to a 1989 No 11 s 66 Section 149(1) amended 25 January 2005 section 65R(3) Public Finance Act 1989 Section 149(2) amended 25 January 2005 section 65R(3) Public Finance Act 1989
150: Duty to deliver books and property to statutory manager
1: Every person having possession, custody, or control
2: If any person fails for 7 days to comply with the requirements of subsection (1), that person commits an offence against this Act
3: If any person fails to comply with subsection (1), the statutory manager may, at any time, certify the failure to the court (whether or not an offence has been committed under subsection (2)), and the court may inquire into the matter and, after hearing any witnesses who may be produced against, or by, or on behalf of the alleged offender, and after hearing any statement which may be offered in defence, may punish the offender as if the offender were liable under subpart 4
4: It shall not be a defence to any proceedings under this section that the person in possession or control of any property is, or was, a trustee of the property for the registered bank, or entitled to a lien or other charge over the property, or was a receiver or manager of the property.
5: The penalty for an offence against this section is set out in section 156AC 1989 No 11 s 67 Section 150(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 150(2) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 150(3) amended 26 August 2020 section 29 Contempt of Court Act 2019 Section 150(5) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
151: Offence to destroy, alter, or conceal records
1: Every person commits an offence against this Act
a: with intent to defeat the purposes of this Part, destroys, alters, or conceals any book, document, or record of, or relating to, a registered bank that is subject to statutory management or sends or attempts to send out of New Zealand any such book, document, or record; or
b: fails or refuses to answer, to the best of that person's knowledge and ability, any question which that person may be asked by the statutory manager in relation to any such book, or document, or record, or any property, or wilfully gives a false or misleading
1A: The penalty for an offence against this section is set out in section 156AC
2: If, in any prosecution for an offence alleged to have been committed against this section, it is proved that the person charged with the offence has destroyed, altered, or concealed any book, document, or record, or has sent, or attempted to send, out of New Zealand, any such book, document, or record, the onus of proving that in so doing that person had not acted in contravention of this section shall lie on that person. 1989 No 11 s 68 Section 151(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 151(1)﻿(b) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 151(1A) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
152: Regulations relating to powers of Bank and statutory manager
1: The Governor-General may, from time to time, by Order in Council, make regulations under section 173
2: The regulations shall be laid before the House of Representatives within 12 sitting days after the date on which they are made if the House of Representatives is then in session, and, if not, shall be laid before the House of Representatives within 12 days after the commencement of the next ensuing session.
3:
4: 1964 No 134 s 38AM 1986 No 131 s 10 Section 152(3) repealed 1 January 2016 section 14 Legislation (Confirmable Instruments) Amendment Act 2015 Section 152(4) repealed 1 January 2016 section 14 Legislation (Confirmable Instruments) Amendment Act 2015
152A: Regulations are confirmable instruments
Section 152A repealed 28 October 2021 section 3 Secondary Legislation Act 2021
153: Application of other Acts
1: Subject to subsection (2), all the provisions of the Companies Act 1993 section 2
2:
3:
4: Nothing in sections 120 207P 209B 214
5: Nothing in the Receiverships Act 1993
6: Subject to subsection (7), all the provisions of the Building Societies Act 1965 section 2
7: Nothing in sections 76 91 to 106
8: The Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with the recommendation of the Bank, declare that the provisions of any Act under which any other registered bank that is subject to statutory management is incorporated, constituted, or registered corresponding with the provisions referred to in subsections (4), (7), and (9)
9: To avoid doubt, the Bank or any other person is not a director (within the meaning of section 126
10: An Order in Council under subsection (8) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 153 replaced 1 July 1994 section 9 Reserve Bank of New Zealand Amendment Act 1993 Section 153(1) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 153(2) repealed 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 153(3) repealed 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 153(4) amended 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 153(4) amended 18 June 2007 section 17 Companies Amendment Act (No 2) 2006 Section 153(8) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 153(9) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 153(10) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
154: Appointment of auditors
1: The statutory manager of a registered bank must appoint 1 or more persons (whether as individuals or as the members from time to time of any firm or firms)
1A: The person or persons appointed to be the auditor under subsection (1) must be—
a: licensed auditors (within the meaning of section 6(1)
b: approved by the Bank.
2: Every such appointment shall be for a term not exceeding 2 years, but any person appointed as auditor shall continue in office until a successor comes into office.
3: Any person appointed as auditor shall be eligible for reappointment.
4: Any auditor may be removed from office at any time by the Minister, by notice in writing to the auditor, inability to perform the functions of the office Minister
5: The auditor shall be paid such fees as are fixed by the statutory manager with the approval of the Bank.
6: Every auditor shall have a right of access at all times to the books and papers of the registered bank, and shall be entitled to require from its officers and employees such information and explanations as the auditor thinks necessary for the performance of the auditor's duties.
7: Any person holding office as auditor of a registered bank at the time that it is declared to be subject to statutory management shall cease to hold that office but may be appointed under this section as auditor of the registered bank.
8: A notice given under subsection (4) must be published in the Gazette Section 154(1) replaced 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 154(1) amended 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 154(1A) inserted 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 154(4) amended 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003 Section 154(4) amended 1 January 2002 section 70(1) Human Rights Amendment Act 2001 Section 154(8) inserted 21 August 2003 section 41 Reserve Bank of New Zealand Amendment Act 2003
155: Annual accounts
1: Within 3 months after the end of each financial year or such later date as may be approved by the Bank, the statutory manager of a registered bank shall prepare the following statements showing the financial position of the registered bank and its subsidiaries at the end of that year and the results of their trading for that year:
a: a statement of financial position statement of financial performance
b: a consolidated statement of assets and liabilities and consolidated statement of trading of the registered bank and its subsidiaries.
2: The statement of financial position
3: The accounts specified in subsection (1) shall be audited and reported on by the auditor. Section 155(1)﻿(a) amended 1 October 1997 section 6(1) Financial Reporting Amendment Act 1997 Section 155(1)﻿(a) amended 1 October 1997 section 6(2) Financial Reporting Amendment Act 1997 Section 155(2) amended 1 October 1997 section 6(1) Financial Reporting Amendment Act 1997
156: Annual report by statutory manager
1: The statutory manager of a registered bank shall, after the end of each financial year, prepare a report on the conduct of the management and the affairs of the registered bank and its subsidiaries.
2: The report, together with the accounts and the auditor's report on them, shall be submitted to the Minister and the Bank within 7 days after the completion of the auditor's report.
3: The report, accounts, and the auditor's report on them shall within 14 days after submission to the Minister be filed—
a: in the case of a registered bank which is a company, with the Registrar of Companies:
b: in the case of a registered bank which is a building society, with the Registrar of Building Societies:
c: in the case of any other body corporate, with the person exercising functions corresponding with those of the Registrar of Companies or the Registrar of Building Societies. Penalties for offences against this Part Heading inserted 21 August 2003 section 40 Reserve Bank of New Zealand Amendment Act 2003
156AA: Penalty for miscellaneous offences
1: A person who commits an offence under any of the provisions listed in subsection (2) is liable, on
a: in the case of an individual, to imprisonment for a term not exceeding 3 months or to a fine not exceeding $50,000:
b: in the case of a body corporate, to a fine not exceeding $500,000.
2: The provisions are—
a: section 77A
b: section 94
c: section 98B(2)﻿(a)
d: section 98B(2)﻿(b)
e: section 105
f: section 115 Section 156AA inserted 21 August 2003 section 40 Reserve Bank of New Zealand Amendment Act 2003 Section 156AA(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011
156AB: Penalty for offences relating to supply of information, etc
1: A person who commits an offence under any of the provisions listed in subsection (2) is liable, on
a: in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000:
b: in the case of a body corporate, to a fine not exceeding $1,000,000.
2: The provisions are—
a: section 74
b: section 89B
c: section 93
d: section 93B section 93
e: section 93C
f: section 99(3)
g: section 139E(5)﻿(a)
h: section 139E(5)﻿(b)
i: section 139E(5)﻿(c)
j: section 139H(4) Section 156AB inserted 21 August 2003 section 40 Reserve Bank of New Zealand Amendment Act 2003 Section 156AB(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 156AB(2)﻿(g) inserted 10 December 2013 section 10 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 156AB(2)﻿(h) inserted 10 December 2013 section 10 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 156AB(2)﻿(i) inserted 10 December 2013 section 10 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Section 156AB(2)﻿(j) inserted 10 December 2013 section 10 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013
156AC: Penalty for offences relating to registration of banks, disclosure statements, prudential supervision of registered banks, etc
1: A person who commits an offence under any of the provisions listed in subsection (2) is liable, on
a: in the case of an individual, to imprisonment for a term not exceeding 18 months or to a fine not exceeding $200,000:
b: in the case of a body corporate, to a fine not exceeding $2,000,000.
2: The provisions are—
a: section 70
b: section 72
c: section 80
d: section 81AC section 81
e: section 89
f: section 89A
g: section 89C(1)﻿(a) section 83
h: section 89C(1)﻿(b) section 83
i: section 89C(1)﻿(c) section 83
j: section 95
k: section 95A section 95
l: section 99(4)
m: section 103(1)
n: section 103(2)
o: section 114(1)
p: section 114(2)
q: section 126
r: section 150
s: section 151(1)﻿(a)
t: section 151(1)﻿(b) Section 156AC inserted 21 August 2003 section 40 Reserve Bank of New Zealand Amendment Act 2003 Section 156AC(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011
5A: Retention of documents by banks
Part 5A inserted 30 June 1995 Reserve Bank of New Zealand Amendment Act (No 2) 1995
156A: Retention of documents by banks
1: For the purposes of this section, bank
a: a registered bank:
b: the Reserve Bank of New Zealand:
c: any other person carrying on in New Zealand the business of banking.
2: Subject to this section, every bank—
a: shall retain, until the expiration of the period specified in subsection (3)﻿(a), every cheque or bank draft that is drawn on that bank and that is presented to it for payment; and may thereafter destroy it:
b: shall retain, until the expiration of the period specified in subsection (3)﻿(a), every bill of exchange or promissory note that is made payable at that bank and that is presented to it for payment; and may thereafter destroy it:
c: shall retain, until the expiration of the period specified in subsection (3)﻿(b), every voucher used in connection with account transactions at a bank or branch of a bank (including every deposit or withdrawal slip); and may thereafter destroy it.
3: For the purposes of subsection (2),—
a: the period applicable in respect of a document to which paragraph (a) or paragraph (b) of that subsection applies shall be,—
i: in the case of a document payable on demand, the period of 7 years beginning with the date of the document; and
ii: in the case of any other document, the period of 7 years beginning with the due date of the document; and
b: the period applicable in respect of a voucher to which paragraph (c) of that subsection applies, shall be the period of 7 years beginning with the date of the transaction to which the voucher relates.
4: It is sufficient compliance with the duty to retain imposed by subsection (2) if—
a: a copy of the document has been made by the bank on microfilm, microfiche, tape, disc, electronic or photographic storage media, or other means; and
b: the copy is able to be reproduced therefrom in a form that can be produced in evidence under the Evidence Act 2006
c: the copy is retained by the bank for the same period as the document is required to be retained pursuant to that subsection.
5: It is sufficient compliance with the duty to retain imposed by subsection (2), in the case of a cheque that has been presented for payment in accordance with section 7D(1)﻿(b)﻿(iii)
a: the paying bank arranges, in accordance with the rules of an inter-bank clearing system (within the meaning of section 7A
b: the paying bank is entitled to obtain possession of the cheque or the copy; and
c: the cheque or copy is retained on behalf of the paying bank for the period specified in subsection (3)﻿(a).
6: No document shall be destroyed pursuant to this section at any time after a demand for the delivery of the document has been made to the bank by the person entitled to it.
7: A copy of a document made pursuant to this section is admissible in evidence in legal proceedings to the same extent as the document of which it is a copy would have been admissible.
8: This section applies to cheques, drafts, bills, and promissory notes received by a bank and vouchers in the possession of a bank either before or after the coming into operation of this section. Section 156A inserted 30 June 1995 Reserve Bank of New Zealand Amendment Act (No 2) 1995 Section 156A(4)﻿(b) amended 1 August 2007 section 216 Evidence Act 2006
5B: Oversight of payment systems
Part 5B inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 General Heading inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156B: Exercise of powers under this Part
The powers conferred on the Bank by this Part must be exercised for the purpose of promoting the maintenance of a sound and efficient financial system. Section 156B inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Supply of information relating to payment systems Heading inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156C: Requirement to supply information relating to payment system
1: The Bank may, by notice in writing to any person referred to in subsection (2), require that person to supply any information or data relating to a payment system.
2: A notice may be given to—
a: an operator of a payment system; or
b: any person who is wholly or partly responsible for the operation of a payment system; or
c: a participant in a payment system.
3: A notice may specify—
a: the periods for which, and the form in which, the information or data must be supplied; and
b: the time by which, and the place in New Zealand at which, the information or data must be supplied.
4: The Bank may, by a subsequent notice, vary, revoke, or amend a notice. Section 156C inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156D: Offence to fail to supply information
1: A person commits an offence if the person, without lawful justification or excuse,—
a: fails to supply information or data in accordance with section 156C
b: supplies information or data in accordance with section 156C
2: The penalty for an offence against this section is set out in section 156J Section 156D inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156E: Requirement that information be audited
1: The Bank may, by notice in writing to any person referred to in section 156C(2) section 156C
2: Every audit must be conducted by a suitably qualified independent person who is approved by the Bank. Section 156E inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156F: Offence not to comply with requirement for audit
1: A person commits an offence if the person fails, without lawful justification or excuse, to comply with a requirement under section 156E(1)
2: The penalty for an offence against this section is set out in section 156J Section 156F inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Disclosure of information relating to payment systems Heading inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156G: Disclosure of information
1: The Bank may publish or disclose any information or data supplied in accordance with section 156C
a: the information or data is available to the public under any Act or is otherwise publicly available information; or
b: the information or data is in a statistical or summary form; or
c: the publication or disclosure of the information or data is for the purposes of, or in connection with, the performance or exercise of any function, power, or duty conferred or imposed on the Bank by this Act or any other legislation; or
d: the publication or disclosure of the information or data is under subpart 3
e: the publication or disclosure of the information or data is to any person who the Bank is satisfied has a proper interest in receiving the information; or
f: the publication or disclosure of the information or data is with the consent of the person to whom the information relates or of the person to whom the information is confidential.
2: The Bank must not publish or disclose information or data under subsection (1)﻿(d) or (e) unless the Bank is satisfied that satisfactory provision exists to protect the confidentiality of that information or data.
3: An officer or employee of the Bank must not publish or disclose any information or data supplied in accordance with section 156C
4: An officer or employee of the Bank commits an offence if the officer or employee contravenes this section.
5: The penalty for an offence against this section is set out in section 156J Section 156G inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Section 156G(1)﻿(c) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 156G(1)﻿(d) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
156H: Limits on further disclosure of information
1: A person to whom any information or data is published or disclosed must not publish, disclose, or use that information or data unless the publication, disclosure, or use is,—
a: in the case of a publication or disclosure under section 156G(1)﻿(c)
i: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty referred to in that paragraph; and
ii: in accordance with any conditions that may be imposed by the Bank:
b: in the case of a publication or disclosure under section 156G(1)﻿(e)
i: authorised by the Bank and in accordance with any conditions that the Bank may have imposed; or
ii: necessary or desirable for the exercise of any function or power conferred by any enactment:
c: in the case of a publication or disclosure under section 156G(1)﻿(f)
2: A person commits an offence if the person contravenes this section.
3: The penalty for an offence against this section is set out in section 156J Section 156H inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Section 156H(1)﻿(a)﻿(i) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
156I: Application of other enactments to information published or disclosed under section 156G
Nothing in any Act, other than this Act or the Official Information Act 1982 section 156G Section 156I inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Penalties for offences against this Part Heading inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003
156J: Penalties for offences
1: A person who commits an offence under any of the provisions listed in subsection (2) is liable, on
a: in the case of an individual, to imprisonment for a term not exceeding 3 months or to a fine not exceeding $50,000; and
b: in the case of a body corporate, to a fine not exceeding $500,000.
2: The provisions are—
a: section 156D
b: section 156F
c: section 156G section 156C
d: section 156H Section 156J inserted 21 August 2003 section 42 Reserve Bank of New Zealand Amendment Act 2003 Section 156J(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011
5C: Designated settlement systems
Part 5C replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 General Heading replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156K: Exercise of powers under this Part
1: The powers conferred on the Minister and the Bank by this Part must be exercised for the purposes of—
a: promoting the maintenance of a sound and efficient financial system; and
b: avoiding significant damage to the financial system that could result from the failure of a participant in a settlement system.
2: The powers conferred on the Minister responsible for the Financial Markets Conduct Act 2013 FMA
a: promoting the integrity and effectiveness of settlement systems and related markets in New Zealand; and
b: enhancing the confidence of investors and other market participants in settlement systems and related markets in New Zealand.
3: The Governor-General must exercise the powers conferred on him or her by this Part for the purposes set out in subsections (1) and (2). Section 156K replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156K(2) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156K(2) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011
156L: Limit on FMA's powers in relation to Bank
For the purposes of this Part, the FMA may exercise its powers under subpart 1 of Part 3 Financial Markets Authority Act 2011
a: a participant in a settlement system; or
b: an operator of a settlement system. Section 156L replaced 1 May 2011 section 82 Financial Markets Authority Act 2011 Designation Heading repealed 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156M: Definitions for this Part
1: In this Part, unless the context otherwise requires,— contact person section 156N(2)﻿(d) designated settlement system section 156N joint regulators
a: the Bank; and
b: the FMA Minister responsible for the Financial Markets Conduct Act 2013 Financial Markets Conduct Act 2013 netted balance netting
a: whether on a bilateral or multilateral basis; and
b: whether or not through the interposition of an operator of the settlement system (whether by novation or otherwise); and
c: whether or not the obligations or claims constitute mutual credits, mutual debts, or other mutual dealings; and
d: whether or not the obligations or claims are denominated in New Zealand currency property pure payment system section 156N(3)﻿(d) rules
a: in relation to a settlement system, means the rules of the settlement system (whether made under bylaws, agreements, procedures, contracts, or other documents) that are evidenced in writing and that provide, among other things, for—
i: the basis on which settlement instructions are given or received; and
ii: the basis on which settlement obligations are determined and calculated (either on a gross basis or using netting); and
iii: the basis on which settlements are effected (either on a gross basis or using netting); and
iv: any action to be taken if a participant in the settlement system is unable, or likely to become unable, to meet the participant's obligations to any or all of the following:
A: an operator of the settlement system:
B: another participant in the settlement system:
C: any other party to those rules; and
b: in relation to a designated settlement system, means the rules of that settlement system that are contained in documents specified in the designation under section 156N
i: been notified, not been disallowed, and come into effect in accordance with the processes and the time frames set out in sections 156ZB 156ZC
ii: been made pursuant to a variation of a designation under section 156ZD settlement
a: the making of a payment or the transfer of the title to, or an interest in, property—
i: that is done in accordance with, or to give effect to, a settlement instruction; and
ii: that is on a gross basis or that uses netting; and
iii: whether by way of book entry on the accounts of a central bank or an operator of a settlement system or otherwise; or
b: any other act that discharges an obligation to make a payment or transfer the title to, or an interest in, property in accordance with the rules of a settlement system settlement instruction
a: that is made in accordance with the rules of that settlement system; and
b: that results, or is intended to result, in 1 or more settlements being effected settlement system
a: means a system or arrangement for effecting settlements or processing settlement instructions in accordance with rules; and
b: includes a payment system specified operator section 156N(2)﻿(c)
2: In this Part, a participant becomes subject to an insolvency event
a: in the case of a company or other body corporate,—
i: a liquidator is appointed in respect of a liquidation under Part 16
ii: an administrator is appointed in respect of a voluntary administration under Part 15A
iii: a liquidator is appointed in respect of a liquidation of an overseas company under section 342
iv: a statutory manager is appointed in respect of a statutory management under Part 3
v: a statutory manager is appointed in respect of a statutory management under Part 5
vi: a person is appointed in respect of, or another event occurs that indicates the start of, a process in New Zealand or in any other country in which the company or other body corporate was incorporated, created, or established that is similar to those set out in subparagraphs (i) to (v); and
b: in the case of an individual,—
i: a person is adjudicated bankrupt under the Insolvency Act 2006
ii: a person is admitted to the no asset procedure in subpart 4 Section 156M replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156M(1) Commission repealed 1 May 2011 section 82 Financial Markets Authority Act 2011 Section 156M(1) joint regulators amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011 Section 156M(1) Minister responsible for the Financial Markets Conduct Act 2013 inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156M(1) Minister responsible for the Securities Act 1978 repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Designation Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156N: Designation of settlement system
1: The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013
2: The order must specify—
a: the settlement system that is the subject of the designation; and
b: the documents that evidence the rules of that settlement system; and
c: which operator of the settlement system is the specified operator; and
d: the name or title of the person to whom notices relating to that settlement system must be given (the contact person
3: The order may also specify all or any of the following:
a: conditions to which the designation is subject:
b: that a particular operator is a participant in the settlement system that is the subject of the designation:
c: that the operator specified in accordance with subsection (2)﻿(c) is an operator to whom section 103A
d: that the settlement system that is the subject of the designation is a pure payment system.
4: Both of the joint regulators must, as soon as practicable after a settlement system has been declared to be a designated settlement system, post on their respective Internet sites the contact details and the name or title of the contact person of that designated settlement system.
5: However, the FMA
6: To avoid doubt,—
a:
b: a breach of a condition to which the designation of a settlement system is subject does not affect the application of section 156Q 156R 156T 156X section 103A
7: An Order in Council under subsection (1) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 156N replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156N(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156N(5) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011 Section 156N(6)﻿(a) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Section 156N(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Effect of designation Heading repealed 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156O: Joint regulators' recommendations subject to procedure in sections 156Y to 156ZA
The procedure set out in sections 156Y to 156ZA section 156N(1) Section 156O replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Effect of designation Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156P: Application of this Part to pure payment systems
1: If a designated settlement system is specified to be a pure payment system in accordance with section 156N(3)﻿(d)
a: all references to a settlement must be read as if they were references to a settlement as defined in subsection (4); and
b: for the purposes of sections 156K 156M 156ZB to 156ZQ
c: all references to the joint regulators in sections 156K 156M 156ZB to 156ZQ
d: anything in sections 156K 156M 156ZB to 156ZQ
e: except as set out in subsection (2), in performing its functions and duties and exercising its powers under sections 156K 156M 156ZB to 156ZQ FMA
f: section 156L
g: the advice of the Minister responsible for the Financial Markets Conduct Act 2013 section 156ZD 156ZE
h: this Part must be interpreted with all necessary modifications in order to give effect to this section.
2: However, if the Bank intends to recommend, in accordance with section 156ZD FMA
3: This section ceases to apply to a designated settlement system if, in accordance with section 156ZD
4: For the purposes of subsection (1)﻿(a), settlement
a: the making of a payment—
i: that is done in accordance with, or to give effect to, a settlement instruction; and
ii: that is on a gross basis or that uses netting; and
iii: whether by way of book entry on the accounts of a central bank or an operator of a settlement system or otherwise; or
b: any other act that discharges an obligation to make a payment in accordance with the rules of a settlement system. Section 156P replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156P(1)﻿(e) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011 Section 156P(1)﻿(g) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156P(2) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011
156Q: Rules of designated settlement system are valid and enforceable
1: The rules of a designated settlement system are valid and enforceable despite any enactment or rule of law to the contrary.
2: However, subsection (1) applies only to the extent that the rules provide for—
a: the basis on which settlement instructions are given or received; and
b: the basis on which settlement obligations are determined and calculated (either on a gross basis or using netting); and
c: the basis on which settlements are effected (either on a gross basis or using netting); and
d: any action to be taken if a participant in the designated settlement system is unable, or likely to become unable, to meet the participant's obligations to any or all of the following:
i: the specified operator of the designated settlement system:
ii: another participant in the designated settlement system:
iii: any other party to those rules. Section 156Q replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156R: Settlements must not be reversed, etc
1: A settlement that is effected in accordance with the rules of a designated settlement system must not, whether in whole or in part, be reversed, repaid, recovered, or set aside despite any enactment or rule of law to the contrary.
2: Subsection (1) extends to any application made to a New Zealand court by a foreign court, foreign representative, or foreign creditor to reverse, repay, recover, or set aside a settlement (whether in whole or in part) that relates to an insolvency (in any form, whether personal or corporate) that is within the jurisdiction of the relevant foreign court, foreign representative, or foreign creditor.
3: In this section,— foreign court foreign proceeding foreign representative 2006 No 57 Schedule 1 Section 156R replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156S: Limits on application of section 156R(1)
1: Section 156R(1)
a: a participant in the designated settlement system in respect of whom the settlement is effected becomes subject to an insolvency event (the insolvent participant
b: the settlement is effected after the insolvent participant becomes subject to an insolvency event.
2: Despite subsection (1), section 156R(1)
a: the settlement is effected within 24 hours after the insolvent participant becomes subject to an insolvency event; or
b: the settlement instruction that gives rise to the settlement is duly authorised on behalf of the insolvent participant after the insolvent participant becomes subject to an insolvency event.
3: For the purposes of subsection (2), authorised on behalf of the insolvent participant
a: a liquidator appointed under Part 16
b: an administrator appointed in accordance with subpart 2 of Part 15A
c: a statutory manager appointed in accordance with section 38
d: a statutory manager appointed in accordance with section 117
e: a person who performs a role similar to those set out in paragraphs (a) to (d) in respect of a process in New Zealand or in any other country in which the insolvent participant was incorporated, created, or established that is similar to those set out in section 156M(2)﻿(a)﻿(i) to (v)
f: a person who is authorised to do so under any enactment or rule of law of New Zealand or of any other country in which the insolvent participant was incorporated, created, or established; or
g: the Assignee nominated under section 59 Section 156S replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156T: Netting is valid and enforceable
If the rules of a designated settlement system provide for netting, any netting in accordance with those rules is valid and enforceable despite any enactment or rule of law to the contrary. Section 156T replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156U: Interrelationship between netting and Companies Act 1993 and Insolvency Act 2006
1: The following provisions do not apply to any netting in accordance with the rules of a designated settlement system:
a: sections 310 to 310O
b: sections 254 to 262
2: However, a netted balance is to be treated as—
a: an amount to which section 310(1)
b: an amount to which section 254(1) section 3 Section 156U replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Procedure for making designation Heading repealed 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156V: Underlying transactions, settlements, and limits on effect of sections 156Q, 156R, and 156T
1: Nothing in section 156Q 156R 156T
a: the operation of any enactment or rule of law in relation to an underlying transaction (including, without limitation, sections 56 292 297 298 section 194
b: any party from taking action against another party that has acted fraudulently or dishonestly so long as the remedy sought or obtained in respect of that action does not affect the application of section 156Q 156R 156T
2: If a person brings an action under any enactment or rule of law in relation to an underlying transaction (including, without limitation, sections 56 292 297 298 section 194
a: a participant received value by means of that settlement; and
b: the value received was an element of the underlying transaction.
3: Nothing in section 292(4A) section 196
a: an underlying transaction; or
b: a settlement that was effected in accordance with the rules of a designated settlement system.
4: In this section, underlying transaction
a: means a transaction that gave rise to—
i: a settlement; or
ii: a settlement obligation; but
b: does not include—
i: a settlement instruction; or
ii: a settlement that was effected in accordance with the rules of a designated settlement system; or
iii: any novation of the obligations of a participant in a designated settlement system that was completed in accordance with the rules of that designated settlement system. Section 156V replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156W: Interrelationship with other enactments
1: The following enactments prevail over sections 156Q 156R 156T
a: sections 122(8) 127(4)
b: sections 42(8) 44(4)
2: This Part prevails over the Insolvency (Cross-border) Act 2006 Section 156W replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156X: Transfer of property in accordance with rules is effective
1: Subsection (2) applies if property is transferred in accordance with the rules of a designated settlement system.
2: If this subsection applies, no person may refuse to take an action on the ground that the transfer was not effective.
3: Nothing in this section—
a: affects any right a person has to refuse to take an action on any other ground; or
b: derogates from section 45G(3) of the Reserve Bank of New Zealand Act 1964 section 84
4: Section 45I of the Reserve Bank of New Zealand Act 1964 (as continued in force by section 84
5: Except as provided in this section, this section has effect despite anything to the contrary in any enactment, rule of law, constitution, deed, or agreement. Section 156X replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Procedure for making designation Heading replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156Y: Application for designation
1: A person who wishes to have a settlement system declared to be a designated settlement system may apply to either of the joint regulators.
2: A joint regulator must, as soon as practicable, advise the other joint regulator if it receives an application.
3: An application must—
a: be accompanied by a copy of the rules of the settlement system; and
b: be accompanied by any information required by either or both of the joint regulators; and
c: set out the contact details and the name or title of the person who is proposed to act as the contact person of the settlement system; and
d: be accompanied by the application fee (if any) that is jointly determined by the joint regulators with the approval of Financial Markets Conduct Act 2013
4: The joint regulators may, together, produce guidelines relating to the application procedure.
5: A determination under subsection (3)﻿(d) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 156Y replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156Y(3)﻿(d) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 156Y(3)﻿(d) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156Y(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
156Z: Consideration of application
1: Both of the joint regulators must consider any application made in accordance with section 156Y
2: In considering an application, each of the joint regulators may have regard to any or all of the following matters:
a: the purpose and scope of the settlement system:
b: the rules of the settlement system:
c: any laws or regulatory requirements relating to the operation of the settlement system and the extent to which the settlement system complies with those laws or regulatory requirements:
d: relevant international standards concerning clearing and settlement systems, to the extent that they are relevant in the circumstances:
e: the capability and capacity of the operators of the settlement system:
f: the financial resources of the settlement system:
g: the importance of the settlement system to the financial system:
h: the impact on creditors of participants in the settlement system of specifying that an operator of the settlement system is an operator to whom section 103A
i: any other matters that the regulator considers appropriate.
3: In considering an application, each of the joint regulators must consider whether the settlement system should be specified to be a pure payment system.
4: In considering an application, each of the joint regulators may have regard, or refer, to, and may rely upon, any relevant information, work, or matter held, or produced, by the other joint regulator. Section 156Z replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZA: Decision on application
1: After considering an application, the joint regulators must, together, either—
a: make a joint recommendation to both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 section 156N
b: refuse to make that recommendation.
2: If subsection (1)﻿(b) applies, the joint regulators must together give notice in writing to the applicant stating—
a: that the joint regulators refuse to make a recommendation that the settlement system to which the application relates be declared to be a designated settlement system under section 156N
b: the reasons for the joint regulators' refusal. Section 156ZA replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZA(1)﻿(a) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Amendments to rules Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZB: Joint regulators must be notified of proposed amendments to rules
1: The specified operator of a designated settlement system must, as soon as practicable, notify either of the joint regulators of any amendment that is proposed to be made to the rules of that designated settlement system.
2: A joint regulator must, as soon as practicable, advise the other joint regulator if it receives notice of a proposed amendment to the rules of a designated settlement system. Section 156ZB replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZC: Proposed amendments to rules may be disallowed
1: The joint regulators may disallow any amendment that is proposed to be made to the rules of a designated settlement system by giving notice to that effect to the contact person of that designated settlement system on or before the day that is 20 working days after the date on which either of the joint regulators first received notice of the proposed amendment under section 156ZB(1)
2: If the joint regulators disallow a proposed amendment in accordance with subsection (1),—
a: the proposed amendment does not come into effect; and
b: the rules of the designated settlement system continue to apply as they did before the amendment was proposed.
3: If the joint regulators do not disallow a proposed amendment in accordance with subsection (1), the proposed amendment comes into effect on—
a: the earlier of—
i: the day after the date on which the contact person of the designated settlement system receives notice from the joint regulators that they have decided not to disallow the proposed amendment; or
ii: the day that is 21 working days after the date on which either of the joint regulators first received notice of the proposed amendment under section 156ZB(1)
b: any later date that is specified as part of the proposed amendment. Section 156ZC replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Variation and revocation of designation Heading replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZD: Variation of designation
1: The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 section 156N
a: by amending any of the matters referred to in section 156N(2)﻿(b) to (d) and (3)﻿(b) to (d)
b: by making the designation subject to a requirement that an amendment be made to the documents that evidence the rules of the settlement system that is the subject of the designation; or
c: by revoking or amending any condition to which the designation is subject; or
d: by making the designation subject to a new condition.
2: An Order in Council under subsection (1) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 156ZD replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZD(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156ZD(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
156ZE: Revocation of designation
1: The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 section 156N
2: An Order in Council under subsection (1) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 156ZE replaced 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZE(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156ZE(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
156ZF: Settlement and netting not affected by variation or revocation of designation
The variation or revocation of a designation made under section 156N sections 156Q 156R 156T Section 156ZF inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZG: Application for variation or revocation of designation
1: A person who wishes to have the designation made under section 156N
2: A joint regulator must, as soon as practicable, advise the other joint regulator if it receives an application.
3: An application must be accompanied by the application fee (if any) that is jointly determined by the joint regulators with the approval of Financial Markets Conduct Act 2013
4: A determination under subsection (3) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 156ZG inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZG(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 156ZG(3) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 156ZG(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
156ZH: Either joint regulator may independently begin review of designation
1: Either of the joint regulators may, independently of the other joint regulator and without having received an application under section 156ZG section 156N
2: A joint regulator must, as soon as practicable, advise the other joint regulator if it begins a review to determine whether to recommend a variation or revocation of a designation made under section 156N
3: No fee can be charged if a joint regulator begins a review under subsection (1). Section 156ZH inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZI: Matters joint regulators may have regard to in recommending variation or revocation of designation
1: In determining whether to make a recommendation that any designation made under section 156N
a: the purpose and scope of the designated settlement system:
b: the rules of the designated settlement system:
c: any laws or regulatory requirements relating to the operation of the designated settlement system and the extent to which the designated settlement system complies with those laws or regulatory requirements:
d: relevant international standards concerning clearing and settlement systems, to the extent that they are relevant in the circumstances:
e: the capability and capacity of the operators of the settlement system:
f: the financial resources of the settlement system:
g: the importance of the designated settlement system to the financial system:
h: the impact on creditors of participants in the settlement system of specifying, or no longer specifying, that an operator of the settlement system is an operator to whom section 103A
i: any failure to comply with any condition to which the designation is subject:
j: any failure to comply with the requirements of this Act:
k: any other matters that the joint regulator considers appropriate.
2: In determining whether to make a recommendation that any designation made under section 156N Section 156ZI inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZJ: Procedure for variation or revocation of designation
1: Before making a recommendation that any designation made under section 156N
a: give the contact person notice of—
i: the reasons for proposing to vary or revoke the designation; and
ii: the fact that the contact person may make submissions to the joint regulators in relation to the proposed variation or revocation; and
b: give the contact person an opportunity to make those submissions within a time period that the joint regulators consider reasonable in the circumstances; and
c: consider any submissions made by the contact person during that time period.
2: The notice referred to in subsection (1)﻿(a) may be given either in writing or orally depending on the circumstances of the particular case. Section 156ZJ inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Obligations to give notice and supply information Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZK: Contact person must be notified of insolvency event
1: This section applies if—
a: a participant in a designated settlement system ( participant A
b: any other participant whose settlements are effected by participant A in accordance with the rules of that designated settlement system becomes subject to an insolvency event.
2: If this section applies, participant A must, as soon as practicable after becoming aware of the insolvency event, notify that fact to the contact person of that designated settlement system.
3: It is sufficient compliance with the requirement to notify the contact person under subsection (2) if—
a: participant A takes all reasonable steps to comply with that requirement; or
b: the contact person was already aware of the insolvency event by the time participant A had to notify the contact person under that subsection. Section 156ZK inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZL: Supply of information relating to designated settlement system
1: The joint regulators may, by notice in writing, require any or all of the following persons to supply the joint regulators with any information relating to any designated settlement system:
a: the specified operator of the designated settlement system:
b: a participant in the designated settlement system:
c: the contact person of the designated settlement system.
2: The joint regulators may exercise the power conferred by subsection (1) only if the joint regulators consider that the information is reasonably required to enable them to perform their functions and duties, or exercise their powers, under this Part.
3: A notice under subsection (1) may specify—
a: the periods for which, and the form in which, the information must be supplied; and
b: the manner in which the information must be verified.
4: A person commits an offence if the person, without lawful justification or excuse, fails to supply information in accordance with this section.
5: The penalty for an offence against this section is set out in section 156ZQ Section 156ZL inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Disclosure of information Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZM: Disclosure of information between joint regulators
1: No obligation as to secrecy or other restriction upon the disclosure of information, whether imposed by an enactment or otherwise, prevents the disclosure of information between either of the following persons:
a: the Bank; and
b: the FMA
2: Subsection (1) only applies to information—
a: obtained for the purposes of the administration of this Part, whether under sections 156Z(4) 156ZI(2) 156ZL
b: that is disclosed by the Bank or the FMA Section 156ZM inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZM(1)﻿(b) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011 Section 156ZM(2)﻿(b) amended 1 May 2011 section 84(3) Financial Markets Authority Act 2011
156ZN: Disclosure of information to third parties
1: The joint regulators may publish or disclose any information or data supplied in accordance with section 156Y(3)﻿(b) 156ZL
a: the information or data is available to the public under any Act or is otherwise publicly available information; or
b: the information or data is in a statistical or summary form; or
c: the publication or disclosure of the information or data is for the purposes of, or in connection with, the performance or exercise of any function, power, or duty conferred or imposed on the Bank or the FMA by this Act or any other legislation; or
d: the publication or disclosure of the information or data is under subpart 3 section 30
e: the publication or disclosure of the information or data is to any person who the joint regulators are satisfied has a proper interest in receiving the information; or
f: the publication or disclosure of the information or data is with the consent of the person to whom the information relates or of the person to whom the information is confidential.
2: The joint regulators must not publish or disclose information or data under subsection (1)﻿(d) or (e) unless the joint regulators are satisfied that satisfactory provision exists to protect the confidentiality of that information or data.
3: An officer or employee of either of the joint regulators must not publish or disclose any information or data supplied in accordance with section 156Y(3)﻿(b) 156ZL
4: An officer or employee of either of the joint regulators commits an offence if the officer or employee contravenes this section.
5: The penalty for an offence against this section is set out in section 156ZQ Section 156ZN inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZN(1)﻿(c) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021 Section 156ZN(1)﻿(d) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
156ZO: Limits on further disclosure of information
1: A person to whom any information or data is published or disclosed must not publish, disclose, or use that information or data unless the publication, disclosure, or use is,—
a: in the case of a publication or disclosure under section 156ZN(1)﻿(c)
i: for the purposes of, or in connection with, the performance or exercise of any function, power, or duty referred to in that paragraph; and
ii: in accordance with any conditions that may be imposed by the joint regulators:
b: in the case of a publication or disclosure under section 156ZN(1)﻿(e)
i: authorised by the joint regulators and in accordance with any conditions that may be imposed by the joint regulators; or
ii: necessary or desirable for the performance of any function or duty, or the exercise of any power, conferred by any enactment:
c: in the case of a publication or disclosure under section 156ZN(1)﻿(f)
2: A person commits an offence if the person contravenes this section.
3: The penalty for an offence against this section is set out in section 156ZQ Section 156ZO inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZO(1)﻿(a)﻿(i) replaced 1 July 2022 section 299(1) Reserve Bank of New Zealand Act 2021
156ZP: Application of other enactments to information published or disclosed under section 156ZN
Nothing in any Act, other than this Act or the Official Information Act 1982, requires the joint regulators or any person to whom information or data has been published or disclosed under section 156ZN Section 156ZP inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Penalties for offences against this Part Heading inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009
156ZQ: Penalties for offences
1: A person who commits an offence under any of the provisions listed in subsection (2)
a: in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000; or
b: in the case of a body corporate, to a fine not exceeding $750,000.
2: The provisions are—
a: section 156ZL
b: section 156ZN section 156ZL
c: section 156ZO Section 156ZQ inserted 24 November 2009 section 6 Reserve Bank of New Zealand Amendment Act 2009 Section 156ZQ(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011
5D: Deposit takers
Part 5D repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Preliminary provisions Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157A: Exercise of powers under this Part
Section 157A repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157B: Interpretation
Section 157B repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157C: Deposit taker defined
Section 157C repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157D: Application of Part
Section 157D repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157E: Bank to consult before recommending making of regulations under this Part
Section 157E repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157F: Principles to be taken into account under this Part
Section 157F repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157G: Exemptions from Part
Section 157G repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157H: Effect of exemption
Section 157H repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Credit ratings Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157I: Deposit taker must have current credit rating
Section 157I repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157J: Bank may approve rating agencies
Section 157J repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157K: Regulations relating to credit ratings
Section 157K repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Governance requirements Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157L: Governance requirements
Section 157L repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Risk management Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157M: Deposit taker must have and comply with risk management programme
Section 157M repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157N: Risk management programme must be provided to trustee and must be amended if required by trustee
Section 157N repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157O: Trustee may require deposit taker to have risk management programme audited
Section 157O repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Minimum capital requirement Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157P: Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain
Section 157P repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157Q: Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain
Section 157Q repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157R: Deposit taker must maintain not less than minimum capital prescribed
Section 157R repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Capital ratio requirement Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157S: Regulations may impose requirement that trust deed includes capital ratio
Section 157S repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157T: Deposit takers and trustees must ensure capital ratio included in trust deed
Section 157T repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157U: Deposit taker must maintain capital ratio required to be included in trust deed
Section 157U repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Restrictions on related party exposures Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157V: Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties
Section 157V repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157W: Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties
Section 157W repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157X: Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed
Section 157X repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157Y: Deposit taker must not exceed maximum limit on related party exposures
Section 157Y repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Liquidity requirements Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157Z: Regulations may impose requirement that liquidity requirements be included in trust deed
Section 157Z repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZA: Deposit takers and trustees must ensure liquidity requirements are included in trust deeds
Section 157ZA repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZB: Deposit takers must comply with liquidity requirements in trust deeds
Section 157ZB repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Other matters relating to trust deeds Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZC: Amendment to trust deed must be treated as if authorised to be made
Section 157ZC repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZD: Trustee may execute amendment to trust deed
Section 157ZD repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Obligations of trustees to Bank Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZE: Bank may require trustee to attest as to deposit taker’s compliance with requirements
Section 157ZE repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZF: Trustee must report to Bank non-compliance or likely non-compliance by deposit taker
Section 157ZF repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZG: Obligation on trustees to disclose information to Bank in certain circumstances
Section 157ZG repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZH: Protection of trustees
Section 157ZH repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Investigation and enforcement powers of Bank Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZI: Bank may require report relating to deposit taker
Section 157ZI repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZJ: Power to obtain information and documents
Section 157ZJ repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZK: Limitation on information to be provided
Section 157ZK repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZL: Limitations on entering and searching place
Section 157ZL repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZM: Search warrant may be issued
Section 157ZM repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZN: Privileges
Section 157ZN repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Confidentiality of information Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZO: Confidentiality of information
Section 157ZO repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZP: Person who does not comply with section 157ZO commits offence
Section 157ZP repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZQ: Application of Official Information Act 1982, etc
Section 157ZQ repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Offences and penalties Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZR: Offences by deposit takers against this Part
Section 157ZR repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZS: Other offences by deposit takers against this Part
Section 157ZS repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZT: Defence for deposit takers charged with offences against this Part
Section 157ZT repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZU: Power of court to discharge deposit taker
Section 157ZU repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZV: Liability of directors
Section 157ZV repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZW: Offences by trustees against this Part
Section 157ZW repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZX: Penalties for offences
Section 157ZX repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013 Miscellaneous Heading repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZY: Matters relating to regulation-making powers under this Part
Section 157ZY repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
157ZZ: Bank must review and report on operation of this Part
Section 157ZZ repealed 1 May 2014 section 92(1) Non-bank Deposit Takers Act 2013
6: Financial and accountability matters
Part 6 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
157: Financial year
Section 157 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Income and expenditure Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
158: Meaning of notional surplus income
Section 158 repealed 10 September 2008 section 18 Reserve Bank of New Zealand Amendment Act 2008
159: Funding agreements
Section 159 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
160: Contents of funding agreements
Section 160 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
161: Funding agreements to be ratified by House of Representatives
Section 161 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162: Determination of annual dividend
Section 162 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Accountability documents Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162AA: Purpose of accountability documents
Section 162AA repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162AB: Assessment of regulatory impacts of policies
Section 162AB repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Statement of intent Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162A: Obligation to provide statement of intent
Section 162A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162B: Content of statement of intent
Section 162B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162C: Process for providing statement of intent to Minister
Section 162C repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162D: Amendments by Bank to statement of intent
Section 162D repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
162E: Statement of intent stands referred to House of Representatives
Section 162E repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Annual reports Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
163: Annual reports and accounts
Section 163 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
163A: Bank not Crown entity
Section 163A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
164: Contents of financial statements
Section 164 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
165: Management statements
Section 165 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Financial stability reports Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
165A: Financial stability reports
Section 165A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Audits Heading repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
166: Auditor-General to be auditor of Bank
Section 166 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
167: Performance audit
Section 167 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
7: Miscellaneous provisions
168: Bank to be good employer
Section 168 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
169: Bank to exhibit sense of social responsibility
Section 169 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
170: Application of Banking Act 1982 to Bank
Section 170 repealed 30 June 1995 section 2(4) Banking Act Repeal Act 1995
171: Conflict with other Acts
Section 171 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
172: Obligations under this Act not limited
An obligation or limitation imposed on a person by any other Act or instrument or by any trust or agreement shall not prevent or excuse that person from complying with any provision of this Act or any regulation made under it or with any direction, notice, requirement or condition given or imposed under that provision. 1964 No 134 s 49
173: Regulations
1: The Governor-General may from time to time, by Order in Council, make regulations for all or any of the following purposes:
a: providing for such matters as are necessary to enable the Minister or the Bank to exercise any powers and functions conferred on the Minister or the Bank by this Act or by any regulations made for any of the purposes of this Act:
b: providing for the granting, refusal, and revocation of consents, permissions, and exemptions in respect of any matters to which any regulations made under this Act relate; and authorising the imposition, variation, and revocation of conditions subject to which such consents, permissions, and exemptions may be granted:
c: providing for the furnishing of information and the production of books or documents to the Minister or the Bank or any other person for any of the purposes of any such regulations (whether or not the effect of doing so may be to require the furnishing of information, or the production of books or documents, that will reveal the identity or affairs of any particular person); and providing for the verification of any such information; and providing that any such books or documents may be copied, and may be retained or impounded, by any person or persons to whom they are produced:
d: authorising the Minister or the Bank or any other person to exercise any discretionary power or authority for the purposes of any such regulations:
e: providing for the delegation of any of the powers or functions of the Minister (including the power of delegation) or the Bank under any such regulations:
f: providing for and regulating the issue, registration, transfer, control, and redemption of any financial products
fa: prescribing information for the purposes of section 69(2A)﻿(c)
fb: prescribing entities and classes of entities for the purposes of the definition of qualifying counterparty in section 122A
fc: providing for when collateral must or must not be taken to be in the possession or under the control of a person for the purposes of section 122(9A)﻿(b) section 122B
fd: providing that section 122B(1)﻿(a)﻿(i), (b), or (c)
g: pescribing forms for the purposes of this Act or of any such regulations, in any case where a form is not prescribed by this Act:
h: providing for and regulating the giving or service of notices for the purposes of this Act or of any such regulations, and the effect of such notices:
i:
j: prescribing offences against any such regulations, and prescribing fines not exceeding in respect of any such offence $5,000 and, in the case of a continuing offence, $200 for every day on which the offence has continued:
k: providing for such matters as are contemplated by or necessary for giving full effect to the provisions of this Act and for its due administration.
2: Regulations under subsection (1)﻿(fb) to (fd)
a: the Minister; and
b: the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is responsible for the administration of the Companies Act 1993
3: The Ministers may make a recommendation under subsection (2)
a: had regard to the matters set out in subsection (4)
b: consulted the persons (or representatives of the persons) that the Ministers consider will be substantially affected by the regulations, and those persons have had the opportunity to comment to the Ministers.
4: The Ministers must have regard to the following under subsection (3)﻿(a)
a: the purposes of this Act, the Companies Act 1993 Corporations (Investigation and Management) Act 1989 Personal Property Securities Act 1999 Property Law Act 2007 Receiverships Act 1993
b: the effect of the regulations on—
i: the maintenance of a sound and efficient financial system; and
ii: the creditors of qualifying counterparties; and
iii: the integrity of statutory management, corporate insolvency, and personal property securities law.
5: Regulations under this section—
a: are secondary legislation ( see Part 3
b: if they are made in reliance on section 152 see subpart 3 1964 No 134 s 50 1977 No 68 s 6 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 173(1)﻿(f) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 173(1)﻿(fa) inserted 4 September 2013 section 5 Reserve Bank of New Zealand Amendment Act 2013 Section 173(1)﻿(fb) inserted 31 August 2019 section 7(1) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(1)﻿(fc) inserted 31 August 2019 section 7(1) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(1)﻿(fd) inserted 31 August 2019 section 7(1) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(1)﻿(i) repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021 Section 173(2) inserted 31 August 2019 section 7(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(3) inserted 31 August 2019 section 7(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(4) inserted 31 August 2019 section 7(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 173(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
174: Consents under regulations
1: If a transaction is entered into or an instrument is executed without the prior consent of the Minister or the Bank required by any regulations made under this Act, the Minister or the Bank, as the case may be, may, at any time, consent to the entry into the transaction or the execution of the instrument.
2: Subject to the terms of the consent, any transaction, or instrument, and any relationship, or interests created by it, which would be invalid or unenforceable without that consent, shall, on the giving of that consent, be valid or enforceable as if the consent had been given before the transaction was entered into or the instrument executed.
3: Consent may be given—
a: in respect of such transactions, instruments, or persons or classes of transactions, instruments, or persons as the Minister or the Bank may determine, or in respect of any specified transaction, instrument, or person:
b: wholly or partly and either unconditionally or subject to such conditions as the Minister or the Bank thinks fit.
4: A consent to the entry into any transaction or the execution of any instrument shall be deemed to be a consent given under the regulations requiring consent. 1964 No 134 s 50A 1968 No 135 s 3 1970 No 2 s 3
175: Offences against regulations
1: Every person commits an offence against this Act who—
a: with intent to deceive, makes any false or misleading statement or any material omission in—
i: any offer or declaration made for the purposes of any regulations under this Act; or
ii: any communication with, or application to, the Minister or the Bank or any other person (whether in writing or otherwise) for the purposes of those regulations:
b: resists, obstructs, or deceives any person who is exercising or attempting to exercise any power or function under any such regulations:
c: without lawful excuse, acts in contravention of, or fails to comply in any respect with, any provision of any such regulations or any direction, notice, requirement, or condition given or imposed under any such regulations.
2: Nothing in subsection (1) limits section 173(j) 1964 No 134 s 51
175A: Privilege against self-incrimination no excuse
Section 175A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
175B: Admissibility of self-incriminating statements
Section 175B repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
176: Penalties for offences
Every person who commits an offence against this Act for which no penalty is provided except in this section is liable on
a: in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $10,000:
b: in the case of a body corporate, to a fine not exceeding $25,000. 1964 No 134 s 52(1) 1977 No 68 s 7(1) Section 176 amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 176 amended 24 March 1995 Reserve Bank of New Zealand Amendment Act 1995
177: Time for filing charging document
Despite anything to the contrary in section 25
a:
b: in any other case, ends on the date that is 6 years after the date on which the offence was committed. Section 177 replaced 1 July 2013 section 413 Criminal Procedure Act 2011 Section 177(a) repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
178: Evidence
Section 178 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
179: Protection from liability
Section 179 repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
179A: Indemnity
Section 179A repealed 1 July 2022 section 299(2) Reserve Bank of New Zealand Act 2021
180: Amendment to Income Tax Act 1976
Section 180 repealed 1 April 1995 Income Tax Amendment Act 1994
181: Amendments to Securities Act 1978
Section 181 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
182: Amendments to Superannuation Schemes Act 1989
Section 182 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
183: Amendments to Trustee Banks Restructuring Act 1988
Section 183 repealed 21 May 1999 section 5 Trustee Banks Restructuring Act Repeal Act 1999
184: Amendment to Securities Amendment Act 1988
Section 184 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
185: Consequential amendments
Section 185 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
186: Repeals and savings
Section 186 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
187: References to trading banks to be read as references to registered banks
Every reference in any other Act to the expression “trading bank” shall be read as a reference to a registered bank. 1986 No 131 s 15
188: Savings
Section 188 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
189: Procedure for applying this Act to persons subject to statutory management under Reserve Bank of New Zealand Act 1964
Section 189 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
190: Transitional provisions in relation to Part 5A and Part 5C of Reserve Bank of New Zealand Act 1964
Section 190 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
191: Transitional provisions in relation to office holders
Section 191 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018
192: Transitional provision in relation to accounts of Bank
Section 192 repealed 1 April 2019 section 35 Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018