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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

38: How power to remove is exercised

You could also call this:

"How the Bank removes someone from a job: a step-by-step guide"

Illustration for Deposit Takers Act 2023

The Bank has to follow some steps before it can use its power to remove someone. You need to know that the Bank must tell the deposit taker and the person in charge at least 7 days before it does anything. The Bank also has to give them a chance to say what they think. The Bank must think about what they say before making a decision. The Bank has to explain why it wants to use its power when it tells the deposit taker and the person in charge. When the Bank decides to use its power, it has to tell the deposit taker, the person in charge, and sometimes the Registrar of Companies. If the Bank tells the Registrar of Companies, it is following the rules of the Companies Act 1993, which says it has to do this.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475517.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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37: Further provisions about power to remove, or

"Rules for Removing Leaders of Deposit Takers"

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39: Person who obtains significant influence over licensed deposit taker must obtain Bank’s approval, or

"You need Bank approval to control a New Zealand deposit taker if you have a big say in its decisions."

Part 2Licensing of deposit takers
Fit and proper requirements

38How power to remove is exercised

  1. The Bank must, before exercising a power under section 34,—

  2. give the licensed deposit taker and the director or senior manager not less than 7 days' notice of the Bank's intention to do so; and
    1. give the licensed deposit taker and the director or senior manager a reasonable opportunity to make submissions to the Bank; and
      1. have regard to those submissions.

        1. The notice given to the deposit taker and the director or senior manager must contain, or be accompanied by, a statement of the Bank's reasons for proposing to exercise the power.

        2. The Bank must exercise the powers conferred by sections 34 and 35 by giving notice to—

        3. the licensed deposit taker; and
          1. the director or the senior manager; and
            1. in the case of a director, the Registrar of Companies.

              1. A notice given under subsection (3)(c) is sufficient compliance with section 159 of the Companies Act 1993.