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Crown Entities Act 2004

Crown entity reporting and financial obligations - Other provisions for financial accountability - Acquisition of financial products, borrowing, guarantees, indemnities, and derivatives

161: Restrictions on acquisition of financial products

You could also call this:

"Rules for Crown entities buying financial products, like shares or loans, with some exceptions."

Illustration for Crown Entities Act 2004

If you are a Crown entity, you must not acquire financial products except in certain situations. You can acquire a debt security denominated in New Zealand dollars that is issued by a registered bank, or by any other entity that satisfies a credit-rating test. You can also acquire a public security. There are more details about what you can acquire in section 160.

If you are holding money or financial products on trust for someone else, this rule does not apply to you. This rule also does not apply to derivatives.

You are still allowed to acquire subsidiaries or shares if section 96 or section 100 says you can.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330566.

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Part 4Crown entity reporting and financial obligations
Other provisions for financial accountability: Acquisition of financial products, borrowing, guarantees, indemnities, and derivatives

161Restrictions on acquisition of financial products

  1. A Crown entity must not acquire financial products other than—

  2. a debt security denominated in New Zealand dollars that is issued by a registered bank, or by any other entity, that satisfies a credit-rating test that is specified in either regulations made under this Part or a notice in the Gazette published by the Minister of Finance:
    1. a public security:
      1. as provided in section 160.

        1. This section does not apply to any money, financial product, or credit balance in a bank account held by a Crown entity on trust for any purpose or for another person.

        2. This section does not apply to derivatives.

        3. This section does not prohibit a Crown entity from acquiring subsidiaries or shares if section 96 or, as the case may be, section 100 allows the acquisition.

        Notes
        • Section 161 heading: amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
        • Section 161(1): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
        • Section 161(2): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
        • Section 161(2A): inserted, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).