Deposit Takers (Fisher & Paykel Finance Limited) Exemption Notice 2010



Deposit Takers (Fisher & Paykel Finance Limited) Exemption 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).


1 Title
  • This notice is the Deposit Takers (Fisher & Paykel Finance Limited) Exemption Notice 2010.

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

3 Interpretation
  • (1) In this notice, unless the context otherwise requires,—

    autonomous director means a director who—

    • (a) is not an employee of any company within—

      • (i) the FPF Group:

      • (ii) Fisher & Paykel Appliances Holdings Limited:

      • (iii) AF Investments Limited:

      • (iv) Fisher & Paykel Appliances Limited and its subsidiary companies; and

    • (b) does not, directly or indirectly, have a qualifying interest in more than 10% of the voting securities of any company within paragraph (a)

    FPF Finance means Fisher & Paykel Finance Limited

    FPF Group means Fisher & Paykel finance group, comprising FPF Holdings and its subsidiaries from time to time, currently being—

    • (a) FPF Finance and its subsidiaries, those subsidiaries being—

      • (i) Consumer Finance Limited:

      • (ii) Consumer Insurance Services Limited:

      • (iii) Equipment Finance Limited; and

    • (b) Fisher & Paykel Financial Services Limited and its subsidiary, that subsidiary being Retail Financial Services Limited

    FPF Holdings means Fisher & Paykel Finance Holdings Limited.

    (2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.

4 Exemption from governance requirement
  • FPF Finance is exempted from section 157L(1)(a) of the Act.

5 Conditions of exemption in clause 4
  • The exemption in clause 4 is subject to the following conditions:

    • (a) FPF Finance remains a subsidiary of, and wholly owned by, FPF Holdings:

    • (b) the autonomous directors appointed to the board of FPF Holdings are also appointed as directors to the boards of each of FPF Holdings' subsidiaries.

Dated at Wellington this 23rd day of November 2010.

Grant Spencer,
Deputy Governor.

Statement of reasons

This notice, which comes into force on 1 December 2010, exempts Fisher & Paykel Finance Limited (FPF Finance) from the requirements of section 157L(1)(a) of the Reserve Bank of New Zealand Act 1989 (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 exemption because—

  • the requirement to appoint independent directors is considered unduly onerous and burdensome, because Fisher & Paykel finance group is managed and operated on an interdependent basis, with its autonomous directors providing independent oversight to the same extent an independent director would, except to a group of companies rather than a single company. Independent directors appointed only to the deposit taker would be less effective by not having oversight of other group members whose operations are interdependent with that of the deposit taker:

  • the fact that this exemption is to an individual entity and has conditions imposed ensures that the exemption is not broader than necessary to address the matters that gave rise to the exemption:

  • this exemption is consistent with the maintenance of a sound and efficient financial system. The exemption preserves a structure that achieves the same outcome as the primary requirement would, while avoiding the unnecessary compliance costs of full compliance with the primary requirement.

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.