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Financial Markets Conduct Act 2013

Climate-related disclosures for certain FMC reporting entities with higher level of public accountability - Overview, application, and interpretation

461Q: Meaning of large (in relation to registered banks, licensed insurers, credit unions, and building societies)

You could also call this:

"What makes a bank, insurer, credit union, or building society a 'large' business in New Zealand?"

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When you look at registered banks, credit unions, and building societies, they are considered large if they have over $1 billion in total assets. This is calculated by looking at the total assets of the company and its subsidiaries over the two previous accounting periods. You can also consider a company large if it is large after amalgamation, which is explained in section 461R.

For licensed insurers, you consider them large if they have over $1 billion in total assets, or if they have over $250 million in annual gross premium revenue. Again, this is calculated over the two previous accounting periods, and you also look at the company's subsidiaries. A licensed insurer can also be considered large after amalgamation, as explained in section 461R.

If a company is from overseas, the rules are a bit different. You need to look at the company's New Zealand business to decide if it is large. The New Zealand business is large if it has over $1 billion in total assets, or if it is a licensed insurer with over $250 million in annual gross premium revenue. You can find more information about what makes a company an overseas company in this section, where an overseas company means a company that is incorporated outside New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS775150.

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"What it means to be a listed issuer, like a big company that people can buy shares in"

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461R: Meaning of large after amalgamation, or

"What it means for a company to be considered large after merging with another company"

Part 7AClimate-related disclosures for certain FMC reporting entities with higher level of public accountability
Overview, application, and interpretation

461QMeaning of large (in relation to registered banks, licensed insurers, credit unions, and building societies)

  1. For the purposes of this Part, a registered bank, credit union, or building society (A) is large in respect of an accounting period if either or both of the following apply:

  2. as at the balance date of each of the 2 preceding accounting periods, the total assets of A and A’s subsidiaries (if any) exceed $1 billion:
    1. A is large after amalgamation (within the meaning of section 461R) in respect of the accounting period.

      1. For the purposes of this Part, a licensed insurer is large in respect of an accounting period if at least 1 of the following paragraphs applies to the licensed insurer:

      2. as at the balance date of each of the 2 preceding accounting periods, the total assets of the licensed insurer and its subsidiaries (if any) exceed $1 billion:
        1. in each of the 2 preceding accounting periods, the annual gross premium revenue of the licensed insurer and its subsidiaries (if any) exceeds $250 million:
          1. the licensed insurer is large after amalgamation (within the meaning of section 461R) in respect of the accounting period.

            1. However, if a registered bank, credit union, building society, or licensed insurer is an overseas company,—

            2. subsections (1) and (2) do not apply; and
              1. the overseas company is large for the purposes of section 461O(1)(b) to (e) if its New Zealand business, or its group’s New Zealand business, is large under subsection (4).

                1. The New Zealand business of an overseas company or its group is large in respect of an accounting period if at least 1 of the following paragraphs applies (calculated as if the New Zealand business were an entity):

                2. as at the balance date of each of the 2 preceding accounting periods, the total assets of the New Zealand business exceed $1 billion:
                  1. the overseas company is a licensed insurer and, in each of the 2 preceding accounting periods, the annual gross premium revenue of the New Zealand business exceeds $250 million.

                    1. A financial reporting standard (or a part of a standard) issued by the External Reporting Board that is expressed as applying for the purposes of subsection (4) must be applied in determining whether that provision applies.

                    2. In this section, overseas company means a body corporate that is incorporated outside New Zealand.

                    Notes
                    • Section 461Q: inserted, on , by section 8 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).