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Deposit Takers Act 2023

Supervision of deposit takers - Bank’s information-gathering power

107: Disclosure of information to Bank by auditors

You could also call this:

"Auditors must tell the Bank about problems with deposit-taking companies"

Illustration for Deposit Takers Act 2023

If you are an auditor for a company that takes deposits, you have to tell the Bank some things. You have to tell the Bank if you think the company has done something wrong, like broken a rule about keeping money safe. You also have to tell the Bank if you think the company has not kept proper accounting records, as required by the FMCA, or if it has not prepared its financial statements correctly, as required by subpart 3 of Part 7 of the FMCA. You must tell the Bank if you think the company is in serious financial trouble, or if it is operating in a way that is fraudulent or reckless.

You have to tell the Bank these things if you think it will help the Bank do its job. The Bank's job is to make sure companies that take deposits are safe and sound.

You must tell the Bank about these things if you get the information while you are working as an auditor, or if you got the information when you used to work as an auditor.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475527.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 4Supervision of deposit takers
Bank’s information-gathering power

107Disclosure of information to Bank by auditors

  1. This section and sections 108 to 110 apply to a person (an auditor) who holds, or at any time has held, office as required by any legislation, as an auditor of a licensed deposit taker or of an associated person of a licensed deposit taker.

  2. An auditor must disclose to the Bank information relating to the affairs of the licensed deposit taker or associated person obtained in the course of holding office as auditor if, in the opinion of the auditor,—

  3. the licensed deposit taker or associated person—
    1. has contravened a prudential obligation; or
      1. has contravened section 455 of the FMCA or any other legislation that requires proper accounting records to be kept; or
        1. has contravened subpart 3 of Part 7 of the FMCA or any other legislation that relates to the preparation, audit, lodgement, or filing of financial statements; or
          1. is in serious financial difficulties; or
            1. is, or has been, operating fraudulently or recklessly; and
            2. the disclosure of the information is likely to assist, or be relevant to, the performance or exercise by the Bank of its functions, powers, or duties under this Act.