Hon Dr Michael Cullen
Government Bill
174—2
As reported from the Finance and Expenditure Committee
Commentary
Key
1 Title
2 Commencement
3 Principal Act amended
Part 1Amendments outside Part 6 of principal Act
4 Long Title repealed
5 New section 1A inserted
1A Purpose
5A Interpretation
6 New section 16 substituted
16 Dealing in foreign exchange by Bank
7 Foreign reserves
8 New section 33 substituted
33 Policy advice
8A Bank may require financial institution to supply information
8B Disqualification of Governor and Deputy Governor
8C Removal of Governor from office
8D Removal of Deputy Governor from office by Order in Council
9 Duties of Board
10 New section 68B inserted
68B Bank to have regard to directions about government policy objectives
10A Further matters that may be prescribed
11 New Part 5D inserted
Part 5DDeposit takers
Preliminary provisions
157A Exercise of powers under this Part
157B Interpretation
157C Deposit taker defined
157D Application of Part
157E Bank to consult before recommending making of regulations under this Part
157F Publication of principles
157F Principles to be taken into account under this Part
157G Exemptions from Part
157H Effect of exemption
Credit ratings
157I Deposit taker must have current credit rating
157J Bank may approve rating agencies
157K Regulations relating to credit ratings
Governance requirements
157L Regulations may prescribe requirements for governance of deposit takers
157L Governance requirements
157M Deposit taker must comply with governance requirements
Risk management
157N Regulations may prescribe requirements relating to risk management
157O Deposit taker must comply with risk management requirements
157M Deposit taker must have and comply with risk management programme
157N Risk management programme must be provided to trustee and must be amended if required by trustee
157O Trustee may require deposit taker to have risk management programme audited
Minimum capital requirement
157P Trust deed must set out minimum capital that deposit taker is required to maintain
157Q Deposit taker must maintain not less than minimum capital prescribed
Capital ratio requirement
157R Regulations may impose requirement that trust deed includes capital ratio
157S Deposit takers and trustees must ensure capital ratio included in trust deed
157T Deposit taker must maintain capital ratio required to be included in trust deed
Restrictions on related party exposures
157U Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties
157V Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties
157W Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed
157X Deposit taker must not exceed maximum limit on related party exposures
Liquidity requirements
157Y Regulations may impose requirement that liquidity requirements be included in trust deed
157Z Deposit takers and trustees must ensure liquidity requirements are included in trust deeds
157ZA Deposit takers must comply with liquidity requirements in trust deeds
Other matters relating to trust deeds
157ZB Amendment to trust deed must be treated as if authorised to be made
157ZC Trustee may execute amendment to trust deed
Obligations of trustees to Bank
157ZD Bank may require trustee to attest as to deposit taker’s compliance with requirements
157ZE Trustee must report to Bank non-compliance or likely non-compliance by deposit taker
157ZF Obligation on trustees to disclose information to Bank in certain circumstances
157ZG Protection of trustees
Investigation and enforcement powers of Bank
157ZH Bank may require report relating to deposit taker
157ZI Power to obtain information and documents
157ZJ Limitations on information required to be provided
157ZJ Limitation on information to be provided
157ZK Limitations on entering and searching place
157ZL Search warrant may be issued
157ZLA Privileges
Confidentiality of information
157ZM Confidentiality of information
157ZN Person who does not comply with section 157ZM commits offence
157ZO Application of Official Information Act 1982, etc
Offences and penalties
157ZP Offences by deposit takers against this Part
157ZQ Other offences by deposit takers against this Part
157ZQA Defence for deposit takers charged with offences against this Part
157ZQB Power of court to discharge deposit taker
157ZR Liability of directors
157ZS Offences by trustees against this Part
157ZT Penalties for offences
Miscellaneous
157ZU Matters relating to regulation-making powers under this Part
157ZUA Bank must review and report on operation of this Part
Part 2Amendments to Part 6 of principal Act
12A Section 158 repealed
12B Funding agreements
12C New section 162 substituted
162 Determination of annual dividend
12 New Part 6 heading substituted
Part 6Financial and accountability matters
13 New heading and sections 162AA and 162AB inserted
Accountability documents
162AA Purpose of accountability documents
162AB Assessment of regulatory impacts of policies
14 New heading inserted
15 Content of statement of intent
16 Process for providing statement of intent to Minister
17 New heading inserted
18 Annual reports and accounts
19 New heading and section 165A inserted
Financial stability reports
165A Financial stability reports
20 New heading inserted
21 New Schedules 3 and 4 added
ScheduleNew Schedules 3 and 4 added
Legislative history
The Parliament of New Zealand enacts as follows: