Deposit Takers (Craigs Investment Partners Cash Management Trust Limited) Exemption Amendment Notice 2010

2010/438

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Deposit Takers (Craigs Investment Partners Cash Management Trust Limited) Exemption Amendment Notice 2010

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 (Craigs Investment Partners Cash Management Trust Limited) Exemption Amendment Notice 2010.

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

4 New clauses 5A and 5B inserted
  • The following clauses are inserted after clause 5:

    5A Exemption from capital ratio requirements
    • (1) CMT is exempted from sections 157T and 157U of the Act.

      (2) The trustee in respect of the debt securities of CMT is exempted from section 157T of the Act in respect of those securities.

    5B Exemption from liquidity requirements
    • (1) CMT is exempted from sections 157ZA and 157ZB of the Act.

      (2) The trustee in respect of the debt securities of CMT is exempted from section 157ZA of the Act in respect of those securities.

5 Conditions of exemption in clause 5
  • (1) The heading to clause 6 is amended by omitting exemption in clause 5 and substituting exemptions in clauses 5 to 5B.

    (2) Clause 6(1) is amended by omitting exemption in clause 5 is and substituting exemptions in clauses 5 to 5B are.

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 (Craigs Investment Partners Cash Management Trust Limited) Exemption Notice 2010. The effect of the amendments is to grant further exemptions to Craigs Investment Partners Cash Management Trust Limited (CMT) from certain sections of the Reserve Bank of New Zealand Act 1989 (the Act), namely sections 157T and 157U (capital ratio requirements) and 157ZA and 157ZB (liquidity requirements).

The Reserve Bank of New Zealand, 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 temporary exemptions because—

  • the additional direct and indirect costs of complying with the capital and liquidity requirements on a short-term basis are unduly onerous and burdensome in the circumstances. The relevant circumstance is that CMT has undertaken to wind down its debt security product by 31 December 2010:

  • they allow CMT sufficient time to work through an appropriate process to change its business so that it no longer meets the definition of a non-bank deposit taker and will therefore not need to comply with the non-bank deposit taker requirements:

  • they apply only until the close of 31 December 2010 and therefore this exemption is not broader than is reasonably necessary to address the matters that gave rise to it. The exemption recognises that CMT needs time to adapt its current business model to reflect the new regulatory environment.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 25 November 2010.

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