1 Short Title and commencement

1A Purpose

2 Interpretation

3 Interpretation of provisions relating to false or misleading information

4 Act to bind the Crown

5 Reserve Bank of New Zealand

6 Branches and agencies

7 Bank to act as central bank

8 Primary function of Bank

9 Policy targets

10 Formulation and implementation of monetary policy

11 Governor to ensure policy targets followed

12 Bank may be directed to formulate and implement monetary policy for different economic objective

13 Bank's primary function not affected

14 Advice concerning effects of monetary policy

15 Policy statements

16 Dealing in foreign exchange by Bank

17 Power of Minister to direct Bank to deal in foreign exchange within guidelines

18 Power of Minister to fix exchange rates for foreign exchange dealing by Bank

19 Effect of directions on policy targets

20 Effect of directions on monetary policy

21 Foreign exchange gains and losses

22 Temporary suspension of foreign exchange business

23 Bank to advise Minister on foreign exchange matters

24 Foreign reserves

25 Issue of currency by Bank

26 Power of Bank to call in currency

27 Legal tender

28 Defacing bank notes

29 Making or issuing of other bank notes or coins

30 Reproduction or imitation of currency

31 Bank to act as lender of last resort

32 Bank may provide settlement account services

33 Policy advice

34 Government banking business

35 Securities registry services

36 Bank may require financial institution to supply information

37 Failure to supply information

38 Requirement that information be audited

39 Powers

40 Governor

41 Duties of Governor

42 Conditions of employment of Governor

43 Deputy Governor

44 Conditions of employment of Deputy Governor

45 Removal of Deputy Governor from office

46 Disqualification of Governor and Deputy Governor

47 Incapacity of Governor and Deputy Chief Executive

48 Vacancy in office of Governor

49 Removal of Governor from office

50 Removal of Deputy Governor from office by Order in Council

51 Delegation

52 Board of directors

53 Duties of Board

53A Board must prepare annual report

54 Membership of Board

55 Term of office of non-executive directors

56 Considerations affecting appointment of non-executive directors

57 Extraordinary vacancies

58 Disqualification of non-executive directors

59 Removal from office of non-executive directors

59A Chairperson of Board

60 Meetings of Board

60A Teleconference meeting

60B Directors to be notified of meetings

60C Who presides at meetings of Board

61 Directors to disclose interests

62 Committees

63 Fees and expenses of non-executive directors

64 Limit on use of restricted words in name or title

65 Bank may authorise use of restricted words in name or title

66 Certain persons exempt from application of section 64

66A Application of Companies Act 1993

66B Limit on use of restricted words in advertisement

66C Power to obtain information

66D Power to require change of name, etc

66E Power to appoint person to enter and search premises

66F Requirements on entering and searching premises

66G Confidentiality of information or documents

66H Limits on further disclosure of information or documents published or disclosed under section 66G

66I Procedure for obtaining warrants

66J Effect of warrant

66K Effect of proceedings

66L Effect of final decision that exercise of powers under section 66E unlawful

66M Penalty for offences

67A Interpretation in this Part

67 Registration and prudential supervision

68 Exercise of powers under this Part

68A Trans-Tasman co-operation

68B Bank to have regard to directions about government policy objectives

69 Register

70 Application for registration

71 Voluntary removal of name from register

72 Offence for person who is not registered bank to hold itself out to be registered bank

73 Determination of applications

73A Further matters to which Bank must have regard if applicant is overseas person

73B Further matters to which Bank must have regard if applicant is subsidiary of overseas person

74 Conditions of registration

75 Publication of principles

76 Registration of certain persons

77 Cancellation of registration

77A Changes of ownership

77B Effect of section 77A on contracts, etc

78 Carrying on business in prudent manner

79 Annual fee [Repealed]

80 Credit rating of registered banks

81 Public disclosure of information or data by registered banks

81AA Further matters that maybe prescribed

81AB Disclosure statement not required to include information or data about customers or clients of registered banks

81AC Duty to supply information or data to registered bank

81A Bank to consult

82 Disclosure statements must be signed

83 Bank may require disclosure statement to be corrected

84 Interpretation [Repealed]

85 Content of advertisements by registered banks [Repealed]

86 Regulations [Repealed]

87 Offence to advertise in contravention of regulations [Repealed]

88 Bank may prohibit advertisements by registered banks [Repealed]

89 Offence to fail to publish required information in disclosure statement

89A Offence to publish false or misleading disclosure statements

89B Offence to fail to make most recent disclosure statement publicly available

89C Other offences in relation to disclosure statements

90 Civil liability

91 Defences

92 Fair Trading Act 1986 not affected

93 Supply of information by registered banks for purposes of prudential supervision

93A Scope of notice under section 93

93B Certain persons may be required to supply information to registered banks

93C Supply of information by other persons for purposes of prudential supervision

94 Requirement that information, data, or forecasts be audited

95 Bank may require report relating to registered banks, etc

95A Bank may require report under section 95 to be published

96 Disclosure of information to Bank by auditors

97 Auditor to inform of intention to disclose

98 Protection of auditors

98A Access to information by home country supervisor

98B Duties of person on receipt of notice under section 98A

99 Powers to obtain information and documents

100 Requirements on entering and searching premises

101 Investigation of affairs of registered bank

102 Powers of person appointed to carry out investigation

103 Offences in relation to investigations

104 Requirements to be complied with by person carrying out investigation

105 Confidentiality of information

106 Procedure for obtaining warrants

107 Effect of warrant

108 Effect of proceedings

109 Effect of final decision that exercise of powers under section 99 unlawful

110 Effect of final decision that exercise of powers under section 101 or section 102 unlawful

111 Bank may require registered bank to consult [Repealed]

112 Bank may give advice and assistance [Repealed]

113 Bank may give directions

113A Scope of directions

113B Power to remove, replace, or appoint directors

114 Offence to contravene directions

115 Offence to disclose giving of direction

116 Miscellaneous provisions with respect to directions and dispositions

117 Statutory management of registered banks and associated persons

118 Grounds on which registered bank may be declared to be subject to statutory management

119 Advisory committee

120 Statutory manager to comply with directions of Bank

121 Considerations affecting exercise of powers by statutory manager

121A Statutory manager to avoid actions likely to have detrimental effect

122 Moratorium

123 Statutory manager may incorporate company under Companies Act 1993 to acquire business of branch of foreign institution

124 Vesting of property subject to security

125 Proof of vesting

126 Prohibition against removal of assets

127 Statutory manager may suspend payment of money owing

128 Management of registered bank to vest in statutory manager

129 Powers of statutory manager

130 Statutory manager empowered to carry on business of registered bank

131 Statutory manager may pay creditors and compromise claims

132 Sale of registered bank

133 Consents not required under other Acts

134 Sale of property or assets subject to a security

135 Proof of transactions

136 Liquidation of registered banks

137 Provisions applying where liabilities included in sale

138 Power to trace property improperly disposed of

139 Application of certain provisions of Companies Act 1993

140 Application of this Part to joint statutory managers, associated persons, and subsidiaries

141 Termination of appointment of statutory manager

142 Statutory manager may apply to High Court for directions

143 Prior winding up, liquidation, or receivership to cease

143A Continuation of statutory management

144 Termination of statutory management

145 Obligations incurred by statutory manager

146 Indemnity [Repealed]

147 Registered bank not entitled to be informed about exercise of powers

148 Expenses of statutory management

149 Advances to statutory manager and members of advisory committee

150 Duty to deliver books and property to statutory manager

151 Offence to destroy, alter, or conceal records

152 Regulations relating to powers of Bank and statutory manager

153 Application of other Acts

154 Appointment of auditors

155 Annual accounts

156 Annual report by statutory manager

156AA Penalty for miscellaneous offences

156AB Penalty for offences relating to supply of information, etc

156AC Penalty for offences relating to registration of banks, disclosure statements, prudential supervision of registered banks, etc

156A Retention of documents by banks

156B Exercise of powers under this Part

156C Requirement to supply information relating to payment system

156D Offence to fail to supply information

156E Requirement that information be audited

156F Offence not to comply with requirement for audit

156G Disclosure of information

156H Limits on further disclosure of information

156I Application of other enactments to information published or disclosed under section 156G

156J Penalties for offences

156K Exercise of powers under this Part

156L Definitions for this Part

156M Designation of payment system

156N Bank's recommendation subject to procedure in sections 156V to 156X

156O Rules of designated payment system are valid and enforceable

156P Settlements must not be reversed, etc

156Q Limits on application of section 156P(1)

156R Netting is valid and enforceable

156S Certain provisions of Companies Act 1993 and of Insolvency Act 2006 not to apply to netting

156T Limits on effect of section 156O or section 156P or section 156R

156U Certain enactments prevail over sections 156O, 156P, and 156R

156V Application for designation

156W Consideration of application

156X Decision on application

156Y Variation of designation

156Z Revocation of designation

156ZA Settlement and netting not affected by variation or revocation of designation

156ZB Matters Bank may have regard to in recommending variation or revocation of designation

156ZC Procedure for variation or revocation of designation

156ZD Supply of information relating to designated payment system

156ZE Contact person must be notified of insolvency

157A Exercise of powers under this Part

157B Interpretation

157C Deposit taker defined

157D Application of Part

157E Bank to consult before recommending making of regulations under this Part

157F Principles to be taken into account under this Part

157G Exemptions from Part

157H Effect of exemption

157J Bank may approve rating agencies

157K Regulations relating to credit ratings

157M Deposit taker must have and comply with risk management programme

157N Risk management programme must be provided to trustee and must be amended if required by trustee

157O Trustee may require deposit taker to have risk management programme audited

157P Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain

157Q Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain

157R Deposit taker must maintain not less than minimum capital prescribed

157S Regulations may impose requirement that trust deed includes capital ratio

157T Deposit takers and trustees must ensure capital ratio included in trust deed

157U Deposit taker must maintain capital ratio required to be included in trust deed

157V Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties

157W Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties

157X Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed

157Y Deposit taker must not exceed maximum limit on related party exposures

157Z Regulations may impose requirement that liquidity requirements be included in trust deed

157ZA Deposit takers and trustees must ensure liquidity requirements are included in trust deeds

157ZB Deposit takers must comply with liquidity requirements in trust deeds

157ZC Amendment to trust deed must be treated as if authorised to be made

157ZD Trustee may execute amendment to trust deed

157ZE Bank may require trustee to attest as to deposit taker’s compliance with requirements

157ZF Trustee must report to Bank non-compliance or likely non-compliance by deposit taker

157ZG Obligation on trustees to disclose information to Bank in certain circumstances

157ZH Protection of trustees

157ZI Bank may require report relating to deposit taker

157ZJ Power to obtain information and documents

157ZK Limitation on information to be provided

157ZL Limitations on entering and searching place

157ZM Search warrant may be issued

157ZN Privileges

157ZO Confidentiality of information

157ZP Person who does not comply with section 157ZO commits offence

157ZQ Application of Official Information Act 1982, etc

157ZR Offences by deposit takers against this Part

157ZS Other offences by deposit takers against this Part

157ZT Defence for deposit takers charged with offences against this Part

157ZU Power of court to discharge deposit taker

157ZV Liability of directors

157ZW Offences by trustees against this Part

157ZX Penalties for offences

157ZY Matters relating to regulation-making powers under this Part

157ZZ Bank must review and report on operation of this Part

157 Financial year

158 Meaning of notional surplus income [Repealed]

159 Funding agreements

160 Contents of funding agreements

161 Funding agreements to be ratified by House of Representatives

162 Determination of annual dividend

162AA Purpose of accountability documents

162AB Assessment of regulatory impacts of policies

162A Obligation to provide statement of intent

162B Content of statement of intent

162C Process for providing statement of intent to Minister

162D Amendments by Bank to statement of intent

162E Statement of intent stands referred to House of Representatives

163 Annual reports and accounts

163A Bank not Crown entity

164 Contents of financial statements

165 Management statements

165A Financial stability reports

166 Auditor-General to be auditor of Bank

167 Performance audit

168 Bank to be good employer

169 Bank to exhibit sense of social responsibility

170 Application of Banking Act 1982 to Bank [Repealed]

171 Conflict with other Acts

172 Obligations under this Act not limited

173 Regulations

174 Consents under regulations

175 Offences against regulations

175A Privilege against self-incrimination no excuse

175B Admissibility of self-incriminating statements

176 Penalties for offences

177 Time limit for prosecutions

178 Evidence

179 Protection from liability

179A Indemnity

180 Amendment to Income Tax Act 1976 [Repealed]

181 Amendments to Securities Act 1978

182 Amendments to Superannuation Schemes Act 1989

183 Amendments to Trustee Banks Restructuring Act 1988 [Repealed]

184 Amendment to Securities Amendment Act 1988

185 Consequential amendments

186 Repeals and savings

187 References to trading banks to be read as references to registered banks

188 Savings

189 Procedure for applying this Act to persons subject to statutory management under Reserve Bank of New Zealand Act 1964

190 Transitional provisions in relation to Part 5A and Part 5C of Reserve Bank of New Zealand Act 1964

191 Transitional provisions in relation to office holders

192 Transitional provision in relation to accounts of Bank