Deposit Takers (Insurance Australia Group Limited) Exemption Notice 2012

  • revoked
  • Deposit Takers (Insurance Australia Group Limited) Exemption Notice 2012: revoked, on 1 April 2015, by clause 4(b) of the Non-bank Deposit Takers (Revocations and Amendments of Exemptions) Notice 2015 (LI 2015/47).

Reprint as at 1 April 2015

Coat of Arms of New Zealand

Deposit Takers (Insurance Australia Group Limited) Exemption Notice 2012

(SR 2012/94)

Deposit Takers (Insurance Australia Group Limited) Exemption Notice 2012: revoked, on 1 April 2015, by clause 4(b) of the Non-bank Deposit Takers (Revocations and Amendments of Exemptions) Notice 2015 (LI 2015/47).

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 (Insurance Australia Group Limited) Exemption Notice 2012.

2 Commencement

This notice comes into force on the day after the date of its notification in the Gazette.

3 Interpretation

(1)

In this notice, unless the context otherwise requires,—

IAG Ltd means Insurance Australia Group Limited, a company incorporated in Australia.

(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 requirement to have current credit rating

IAG Ltd is exempted from section 157I of the Act.

5 Exemption from governance requirements

IAG Ltd is exempted from section 157L of the Act.

6 Exemption from requirement to have risk management programme

IAG Ltd is exempted from section 157M of the Act.

7 Exemption from minimum capital requirements

(1)

IAG Ltd is exempted from sections 157Q and 157R of the Act.

(2)

The trustee in respect of any debt securities offered to the public by IAG Ltd is exempted from section 157Q of the Act in respect of those securities.

8 Exemption from capital ratio requirements

(1)

IAG Ltd is exempted from sections 157T and 157U of the Act.

(2)

The trustee in respect of any debt securities offered to the public by IAG Ltd is exempted from section 157T of the Act in respect of those securities.

9 Exemption from related party exposures requirements

(1)

IAG Ltd is exempted from sections 157X and 157Y of the Act.

(2)

The trustee in respect of any debt securities offered to the public by IAG Ltd is exempted from section 157X of the Act in respect of those securities.

10 Exemption from liquidity requirements

(1)

IAG Ltd is exempted from sections 157ZA and 157ZB of the Act.

(2)

The trustee in respect of any debt securities offered to the public by IAG Ltd is exempted from section 157ZA of the Act in respect of those securities.

11 Conditions of exemptions in clauses 4 to 10

(1)

The exemptions in clauses 4 to 10 are subject to the following conditions:

(a)

IAG Ltd must continue to be an authorised non-operating holding company for the purposes of the Insurance Act 1973 (Aust); and

(b)

IAG Ltd must not lend funds other than to its subsidiaries, its associates, or parties with which it is carrying on a joint venture (related parties); and

(c)

a related party of IAG Ltd to which IAG Ltd has loaned funds must not carry on the business of borrowing and lending money.

(2)

However, subclause (1)(c) does not prevent a related party of IAG Ltd from borrowing money from, or lending money to, IAG Ltd or another related party of IAG Ltd that is not carrying on the business of borrowing and lending money.

(3)

In this clause,—

AASB means the Australian Accounting Standards Board

associate and subsidiary have the meanings given in AAS 14 Accounting for Investments in Associates (an accounting standard issued by the AASB in May 1997)

joint venture has the meaning given in AAS 19 Interests in Joint Ventures (an accounting standard issued by the AASB in December 1998).

Dated at Wellington this 11th day of May 2012.

Grant Spencer,
Deputy Governor.

Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette, exempts Insurance Australia Group Limited (IAG Ltd) from the prudential requirements of Part 5D of the Reserve Bank of New Zealand Act 1989 (the Act), namely—

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 exemptions because—

  • the Bank is satisfied that compliance with the Part 5D regime, with its attendant compliance costs, is unduly onerous and burdensome in the circumstances. The circumstances are that IAG Ltd is an Australian incorporated company, authorised as a non-operating holding company of general insurance companies under the Insurance Act 1973 (Aust), and subject to prudential supervision by the Australian Prudential Regulation Authority. In addition, IAG Ltd’s lending activity is limited to members of its corporate group that are not carrying on the business of borrowing and lending money:

  • for the reason given above, the Bank is satisfied that the exemption is consistent with the maintenance of a sound and efficient financial system:

  • the fact that the exemption has conditions imposed ensures that the exemption is not broader than necessary to address the matters that gave rise to the exemption.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 17 May 2012.

Reprints notes
1 General

This is a reprint of the Deposit Takers (Insurance Australia Group Limited) Exemption Notice 2012 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

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.

4 Amendments incorporated in this reprint

Non-bank Deposit Takers (Revocations and Amendments of Exemptions) Notice 2015 (LI 2015/47): clause 4(b)