Non-bank Deposit Takers Bill

  • enacted

Hon Bill English

Non-bank Deposit Takers Bill

Government Bill

312—2

As reported from the Finance and Expenditure Committee

Contents

Commentary

Key

1 Title

2 Commencement

Part 1
Preliminary provisions

3 Purpose

4 Interpretation

5 NBDT defined

6 Related party defined

7 Bank's function under this Act

8 Principles to take into account when exercising powers

8A Bank to have regard to directions about government policy objectives

9 Act binds the Crown

Part 2
Licensing and prudential regulation

Subpart 1Licensing

10 NBDTs to be licensed

11 No holding out

Process for obtaining licence

12 Application for NBDT licence

13 Determining applications for licence

14 Requirements of suitability notices

15 Dealing with suitability notices

16 Grant of licence

Conditions of licence

17 Licence may be subject to conditions

18 Kinds of licence conditions and their effect

19 Changing or removing conditions

Cancellation of licence

20 Grounds for cancelling licence

21 Procedure for cancelling licence

Subpart 2Prudential obligations

Credit ratings

22 Licensed NBDTs to have current credit rating

23 Regulations relating to credit ratings

Governance requirements

24 Requirement for independent directors

25 Certain provisions in governing document of no effect

Risk management programmes

26 Licensed NBDTs to have and comply with risk management programme

27 Trustee role in risk management programmes

28 Risk management programmes to be reviewed

Minimum capital requirements

29 Regulations relating to minimum capital requirements

30 Ensuring minimum capital requirements included in trust deeds

31 Licensed NBDTs to maintain not less than minimum capital prescribed

Capital ratio requirements

32 Regulations relating to capital ratios

33 Ensuring capital ratio included in trust deeds

34 Licensed NBDTs to maintain required capital ratio

Restrictions on related party exposures

35 Regulations relating to exposure to related parties

36 Ensuring maximum limit on related party exposures included in trust deeds

37 Licensed NBDT not to exceed maximum limit on related party exposures

Liquidity requirements

38 Regulations relating to liquidity requirements

39 Ensuring liquidity requirements included in trust deeds

40 Licensed NBDTs to comply with liquidity requirements

Subpart 3Other obligations

Notifying Bank of suitability concerns

41 Directors' obligation on becoming aware of suitability concerns

Consent for changes of ownership

42 Bank's consent for change of ownership

Additional obligations of trustees to Bank

43 Bank may require trustee to attest to licensed NBDT’s compliance

44 Trustee to report to Bank on licensed NBDT non-compliance

45 Trustees to disclose certain information about licensed NBDTs to Bank

Part 3
Monitoring and enforcement

Provision of information to Bank

46 Bank may require information, etc, from licensed NBDT

47 Bank may require information, etc, from associated persons

48 Bank may require reports for investigation purposes

49 Bank may require trustee to provide information about licensed NBDTs

Powers where offence suspected

50 Bank may require information if offence suspected

51 Power to enter and search

Provisions about information disclosed

52 Privileges where information required to be disclosed

53 Confidentiality of information

54 Application of Official Information Act 1982

Power to give directions

55 Bank directions to licensed NBDTs and associated persons

56 Bank directions to trustees

57 Miscellaneous matters relating to directions

58 Obligation to comply with directions

Power to remove or appoint directors

59 Bank's powers to remove or appoint directors of licensed NBDTs and associated persons

60 Procedures for removal and appointment of directors

Appeals relating to directors and senior officers

61 Appeal against Bank decisions on suitability

62 Appeal to Court of Appeal on question of law

Offences

63 Definition of tier 1, etc, offence

63 Definitions of levels of penalties

64 General offences

65 Offence to disclose giving of direction or notice

66 Defence to charge under Act

67 Liability of directors for offences of NBDTs and associated persons

68 Time for laying information for summary offences

68 Limitation period

68A Provision applying before parts of Criminal Procedure Act 2011 in force

Part 4
Miscellaneous provisions

Exemptions

69 Exemptions from Act and regulations

70 Status and publication of exemptions

71 Effect of exemption

Regulations

72 Regulations

73 Extension of regulation-making powers relating to prudential obligations

74 Material incorporated by reference in regulations

75 Bank to consult before recommending regulations

Trustees and trust deeds

76 Protection of trustees

77 Amendments to trust deeds treated as authorised

78 Trustees may execute amendment to trust deeds

Protection from liability and indemnity

79 Protection from liability for Bank, etc

80 Indemnity for Bank, etc

Other miscellaneous provisions

81 Notice and service of documents

82 Power to amend, revoke, or replace notices, etc

83 Obligations under this Act not limited

84 Register of licensed NBDTs

85 Rating agencies

Review of Act

86 Bank to review and report on operation of this Act

Transitional provisions

87 Transitional arrangements for pre-existing NBDTs

88 Exemptions continue in force

88A Transitional references in Reserve Bank of New Zealand Act 1989

FMA to consult with Bank before recommending statutory management of NBDT

89 Amendment to Corporations (Investigation and Management) Act 1989

Consequential and other amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008

90 Amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008

Consequential amendments and revocations

91 Consequential amendments in Schedules 2 and 3

92 Consequential revocation of regulations

Schedule 1
Material incorporated by reference

Schedule 2
Consequential amendments to Reserve Bank of New Zealand Act 1989

Schedule 3
Consequential amendments to other enactments

Legislative history


The Parliament of New Zealand enacts as follows: