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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Procedural matters

75: Procedure for issuing standards

You could also call this:

"How the Bank creates new rules to keep your money safe"

Illustration for Deposit Takers Act 2023

When the Bank wants to issue a new standard, it must do a few things first. You need to know that the Bank will notify the Minister about the new standard and what policy it is based on. The Bank will also talk to other important people, like the members of the Council of Financial Regulators, and people who will be affected by the new standard.

The Bank has to consider what the government's financial policy is when making new standards, you can see more about this in section 49 of the Reserve Bank of New Zealand Act 2021.

If the Bank forgets to do one of these steps, it does not mean the new standard is not valid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS471895.

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74: Application of standards, or

"Rules for deposit takers: how standards apply to them"

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76: When procedural requirements do not apply, or

"When the Bank doesn't have to follow all the rules to make or change standards for deposit takers"

Part 3Regulation of deposit takers
Standards: Procedural matters

75Procedure for issuing standards

  1. Before issuing a standard (the proposed standard), the Bank must—

  2. notify the Minister of the prudential policy that the Bank intends to implement through the proposed standard; and
    1. consult the other members of the Council of Financial Regulators; and
      1. consult the persons, or representatives of the persons, that the Bank considers will be substantially affected by the issue of the proposed standard.

          1. Guidance note

          See also section 49 of the Reserve Bank of New Zealand Act 2021, which requires the board of the Bank to have regard to the financial policy remit when the Bank is issuing standards.

        1. A failure to comply with this section does not affect the validity of any standard.