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Deposit Takers Act 2023

Miscellaneous - Use of words bank, banker, and banking - Limit on use of restricted words in advertisement

434: Limit on use of restricted words in advertisement

You could also call this:

"Rules for using certain words when advertising financial services"

Illustration for Deposit Takers Act 2023

If you are a person who provides financial services, you must follow some rules when you advertise. You cannot use certain words in your advertisements unless you also include a special statement. This statement must say that you are not a licensed deposit taker and it must be clear and noticeable to the people you are advertising to. You also need to say whether or not you are regulated by the Bank, and if you are, you need to say how you are regulated. When you advertise, you are promoting your services or products, and this can include using your trade mark, but it does not include just using your name or title. If you want to compare this to an earlier law, you can look at the 1989 law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475584.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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Part 8Miscellaneous
Use of words bank, banker, and banking: Limit on use of restricted words in advertisement

434Limit on use of restricted words in advertisement

  1. A specified person must not use a restricted word in an advertisement unless the advertisement contains a statement that complies with subsections (2) and (3).

  2. The statement must—

  3. state that the specified person is not a licensed deposit taker; and
    1. be communicated in a manner that ensures, as far as is reasonably practicable, that the statement attracts the attention of the persons to whom the advertisement is directed.

      1. The statement must also—

      2. state that the specified person is not regulated or supervised by the Bank; or
        1. if the specified person is regulated or supervised by the Bank, state the capacity in which it is regulated or supervised by the Bank.

          1. In this subpart,—

            advertisement—

            1. means anything used to promote—
              1. the interests of a specified person; or
                1. the services or products of that person; and
                2. includes a trade mark of a specified person; but
                  1. does not include the name or title of a specified person

                    specified person—

                    1. means a person that—
                      1. is a financial service provider; or
                        1. directly or indirectly holds out that they are entitled, qualified, able, or willing to be in the business of providing a financial service to persons in New Zealand; but
                        2. does not include a licensed deposit taker.

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