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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

You must not use certain words in an advertisement unless it includes a statement. This statement must say you are not a licensed deposit taker. It must also be clear and noticeable to the people the advertisement is for. You must also state if you are regulated by the Bank or not. If you are, you must say how the Bank regulates you. When we talk about an advertisement, we mean anything that promotes you or your services. This can include a trade mark, but not your name or title. A specified person is someone who provides financial services or says they can. But it does not include someone who is already a licensed deposit taker. You can compare this to 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.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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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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