Dated at Wellington this 18th day of November 2010.
Statement of reasons
This notice, which comes into force on 1 December 2010, amends the Deposit Takers (Charitable and Religious Organisations) Exemption Notice 2010 (the principal notice). The effect of the amendments is to—
grant further exemptions to charitable and religious organisations from certain sections of the Reserve Bank of New Zealand Act 1989 (the Act), 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 charitable and religious organisations from section 157I of the Act (the requirement to have a credit rating); and
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 exemptions because—
the additional direct and indirect costs of complying with the requirements for deposit takers covered by the principal notice in the short term are unduly onerous or burdensome in the circumstances. These deposit takers are different from many deposit takers in that they are exempt from various requirements under the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003 and they exist to support and provide funding to their respective charitable or religious communities. Therefore, without this temporary exemption, these deposit takers would need to give up the benefits of their existing exemption:
this exemption is a temporary exemption that is due to expire on 30 November 2012, the same day as the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003 is due to expire, and only extends to The Kingdom Resources Trust and deposit takers that are operating under the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003; this ensures that this exemption does not go further than is reasonably necessary to address the concerns raised above. The Kingdom Resources Trust is also a charitable organisation that is a deposit taker and the same reasons for granting exemptions to other charitable and religious organisations also apply to it.
Date of notification in Gazette: 25 November 2010.
This notice is administered by the Reserve Bank of New Zealand.