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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

34: Power to remove directors and senior managers

You could also call this:

"The Bank can remove bosses who are not suitable for their job."

Illustration for Deposit Takers Act 2023

The Bank can check if a director or senior manager of a deposit taker is a fit and proper person. You need to be a fit and proper person to hold one of these jobs. The Bank looks at certain matters to decide this, and if they think someone is not fit and proper, they can take action.

If the Bank has reasonable grounds to believe someone is not a fit and proper person, they can remove that person from their job. The Bank gets to choose when this removal happens. This means the director or senior manager will not be able to work in that role from the date the Bank decides.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475516.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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33: Offence to fail to disclose fit and proper concerns, or

"Telling someone about concerns is a must, or you might get a big fine."

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35: Bank may direct that person may not be reappointed, or

"The Bank can stop someone from being reappointed as a director or manager"

Part 2Licensing of deposit takers
Fit and proper requirements

34Power to remove directors and senior managers

  1. This section applies if the Bank, after having regard to the fit and proper matters specified in an applicable standard, has reasonable grounds to believe that a director or senior manager of a licensed deposit taker is not a fit and proper person to hold the relevant position.

  2. The Bank may remove the director or senior manager from the relevant position from a date specified by the Bank.