Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010

  • revoked
  • Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010: revoked, on 1 May 2014, pursuant to section 93(a) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Reprint
as at 1 May 2014

Coat of Arms of New Zealand

Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010

(SR 2010/434)

  • Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010: revoked, on 1 May 2014, pursuant to section 93(a) of the Non-bank Deposit Takers Act 2013 (2013 No 104).


Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

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


Pursuant to section 157G of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).

Notice

1 Title
  • This notice is the Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010.

2 Commencement
  • This notice comes into force on 1 December 2010.

3 Principal notice amended
4 Interpretation
  • (1) Clause 3 is amended by inserting the following definition in its appropriate alphabetical order:

    deposit taker in receivership or liquidation means a deposit taker that—

    • (a) is in receivership, and no debt securities, except specified debt securities, are being offered for subscription by, or on behalf of, the deposit taker; or

    • (b) is in liquidation under Part 16 of the Companies Act 1993 or under any other enactment.

    (2) The definition of registered prospectus in clause 3 is revoked.

5 New clauses 4 to 9 substituted
  • Clause 4 is revoked and the following clauses are substituted:

    4 Exemption from requirement to have credit rating
    • A deposit taker in receivership or liquidation is exempted from section 157I of the Act.

    5 Exemption from governance requirements
    • A deposit taker in receivership or liquidation is exempted from section 157L of the Act.

    6 Exemption from risk management programme requirements
    • A deposit taker in receivership or liquidation is exempted from section 157M of the Act.

    7 Exemption from capital ratio requirements
    • (1) A deposit taker in receivership or liquidation is exempted from sections 157T and 157U of the Act.

      (2) The trustee in respect of the debt securities of a deposit taker in receivership or liquidation is exempted from section 157T of the Act in respect of those securities.

    8 Exemption from related party exposures requirements
    • (1) A deposit taker in receivership or liquidation is exempted from sections 157X and 157Y of the Act.

      (2) The trustee in respect of the debt securities of a deposit taker in receivership or liquidation is exempted from section 157X of the Act in respect of those securities.

    9 Exemption from liquidity requirements
    • (1) A deposit taker in receivership or liquidation is exempted from sections 157ZA and 157ZB of the Act.

      (2) The trustee in respect of the debt securities of a deposit taker in receivership or liquidation is exempted from section 157ZA of the Act in respect of those securities.

Dated at Wellington this 18th day of November 2010.

Grant Spencer,
Deputy Governor.


Statement of reasons

This notice, which comes into force on 1 December 2010, amends the Deposit Takers (In Receivership or Liquidation) Exemption Notice 2009 (the principal notice). The effect of the amendments is to grant further exemptions to deposit takers in receivership or liquidation from certain sections of the Reserve Bank of New Zealand Act 1989, namely sections 157L (governance requirements), 157T and 157U (capital ratio requirements), 157X and 157Y (related party exposures requirements), and 157ZA and 157ZB (liquidity requirements). The principal notice already exempts deposit takers in receivership or liquidation from sections 157I (requirement to have a credit rating) and 157M (risk management programme requirements) of the Act.

The Reserve Bank of New Zealand (the Bank), after taking into account the principles set out in section 157F of the Act and satisfying itself as to the matters set out in section 157G(2) of the Act, considers it appropriate to grant the additional exemptions because—

  • the Bank is satisfied that the exemption is consistent with the maintenance of a sound and efficient financial system:

  • compliance with the governance, capital ratio, related party exposures, and liquidity requirements would be unduly onerous and burdensome and very difficult to achieve under the circumstances, given that a deposit taker in receivership or liquidation is subject to external management intended to realise its assets for the benefit of existing creditors:

  • limiting this exemption only to deposit takers in liquidation or those in receivership that are not offering deposits to the general public ensures that this exemption is not broader than necessary in that it only applies to entities that have no, or little likelihood of, ongoing viability; but at the same time it does not preclude the possibility of investment, for example, by a wealthy or experienced investor, that may assist an entity in receivership.


Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 25 November 2010.


Reprints notes
1 General
  • This is a reprint of the Deposit Takers (In Receivership or Liquidation) Exemption Amendment Notice 2010 that incorporates all the amendments to that notice as at the date of the last amendment to it.

2 Legal status
  • Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes
4 Amendments incorporated in this reprint