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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

30: Overseas licensed deposit taker must notify Bank if new director or senior manager is appointed

You could also call this:

"Tell the Bank when you hire a new boss or manager if you're a bank from another country."

Illustration for Deposit Takers Act 2023

If you are an overseas licensed deposit taker, you must tell the Bank when you appoint a new director or senior manager. You have 20 working days to do this and you must provide a fit and proper certificate for the new person. This certificate is to show that the new director or senior manager is suitable for the role.

If you do not tell the Bank on time, you will commit an infringement offence. This means you may have to pay a fee of $10,000 or a fine of up to $25,000 decided by a court. You must follow this rule to avoid any penalties.

You should provide the fit and proper certificate to the Bank as soon as possible after the appointment. This is an important step to ensure that your new director or senior manager is approved by the Bank.

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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=LMS475514.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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29: Bank may suspend director or senior manager if approval not obtained, or

"The Bank can stop a director or senior manager from working if they weren't properly approved."

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31: Bank may require further fit and proper certificate, or

"The bank can ask for extra checks on important people in charge of deposit takers."

Part 2Licensing of deposit takers
Fit and proper requirements

30Overseas licensed deposit taker must notify Bank if new director or senior manager is appointed

  1. An overseas licensed deposit taker must, no later than 20 working days after the appointment of a new director or senior manager, provide to the Bank a fit and proper certificate for the new director or senior manager.

  2. An overseas licensed deposit taker that contravenes subsection (1) commits an infringement offence and is liable to—

  3. an infringement fee of $10,000; or
    1. a fine imposed by a court not exceeding $25,000.