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Deposit Takers Act 2023

Miscellaneous - Use of words bank, banker, and banking - Limit on use of restricted words in name or title

425: Limit on use of restricted words in name or title

You could also call this:

"Don't use special finance words in your business name without permission"

Illustration for Deposit Takers Act 2023

If you are a financial service provider or you say you can provide financial services in New Zealand, there are rules you must follow. You cannot use certain restricted words in your name or title when you set up your business or change its name. You also cannot use these restricted words when you are doing business in New Zealand, even if you are using an agent.

When the law talks about "use" of a restricted word, it means doing something that is not allowed under this rule, as explained in sections 427, 428, 429, and 431.

You need to be careful with the words you choose for your business name or title to make sure you are not breaking the rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS470474.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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424: Licensed deposit taker not entitled to be informed about exercise of powers under this Part, or

"Licensed deposit takers don't get to know when certain powers are used against them."

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426: Offence to contravene limit on use of restricted words, or

"Breaking rules about using certain words can get you a big fine."

Part 8Miscellaneous
Use of words bank, banker, and banking: Limit on use of restricted words in name or title

425Limit on use of restricted words in name or title

  1. This section applies to a person that—

  2. is a financial service provider; or
    1. directly or indirectly holds out that they are entitled, qualified, able, or willing to be in the business of providing a financial service to persons in New Zealand.

      1. The person must not—

      2. be formed, incorporated, or registered using a name or title that includes a restricted word; or
        1. change its name or title to a name or title that includes a restricted word; or
          1. use a name or title that includes a restricted word when carrying on any activity directly or indirectly in New Zealand (whether through an agent or otherwise).

            1. In sections 427, 428, 429, and 431, use, in relation to a restricted word, means to act in a manner prohibited by this section.

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