Reserve Bank of New Zealand Amendment Act 2006

1: Title
This Act is the Reserve Bank of New Zealand Amendment Act 2006.
2: Commencement
1: Sections 5 6 8
2: The rest of this Act comes into force on 1 November 2006.
3: Principal Act amended
This Act amends the Reserve Bank of New Zealand Act 1989
4: Interpretation
Paragraph (d) financial institution engaged in the business of borrowing and lending money, or providing financial services, or both,
5: New section 67A inserted
The following section is inserted before section 67
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 outsourcing arrangement prescribed Australian financial authority section 68A
6: New section 68A inserted
The following section is inserted after section 68
68A: Trans-Tasman co-operation
1: When performing functions or duties or exercising powers under this Part, the Bank must—
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)
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
7: New section 69 substituted
Section 69
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.
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.
8: New section 121A inserted
The following section is inserted after section 121
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)
3: Where the Bank receives a notification under subsection (1)
4: The Bank is not required to comply with subsection (3)
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.
9: Protection from liability
Section 179(1) ; and
d: every director of the Bank .
10: Indemnity
Section 179A(2)
f: every director of the Bank .