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Deposit Takers Act 2023

Enforcement - Pecuniary penalty - Court may make pecuniary penalty order

157: When court may make pecuniary penalty orders

You could also call this:

"When you break a rule, a court can order you to pay a penalty to the government."

Illustration for Deposit Takers Act 2023

The court can order you to pay a penalty to the government if you break a rule. You can break a rule by doing something wrong, like not following a standard or a condition of your licence. The court can also order you to pay a penalty if you help someone else break a rule.

If you are involved in breaking a rule, it means you did something to help it happen. This can include giving advice or encouragement, or being part of a plan to break the rule. The court can order you to pay a penalty if you break a rule, such as not doing your job properly as a director or chief executive officer, as outlined in section 93 or section 94.

The penalty is paid to the government, and the court decides how much you have to pay. The court makes this decision if it thinks you have done something wrong, like breaking a standard or a condition of your licence. You are responsible for your actions, and the court can punish you if you do something wrong.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475599.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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156: Licensed deposit taker or other person may withdraw or amend undertaking, or

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158: Maximum amount of pecuniary penalty, or

"Maximum fine for breaking the rules: up to $5 million for companies or $1 million for individuals"

Part 5Enforcement
Pecuniary penalty: Court may make pecuniary penalty order

157When court may make pecuniary penalty orders

  1. The court may, on the application of the Bank, order a person (A) to pay to the Crown the pecuniary penalty that the court determines to be appropriate if the court is satisfied that A has—

  2. contravened an applicable standard; or
    1. been involved in a contravention of an applicable standard; or
      1. contravened a condition of its licence; or
        1. contravened section 93 (directors’ due diligence duty); or
          1. contravened section 94 (New Zealand chief executive officers’ due diligence duty).

            1. In this subpart,—

            2. A’s conduct means the conduct of A for which A is liable to the pecuniary penalty:
              1. a person is involved in a contravention of an applicable standard if the person—
                1. has aided, abetted, counselled, or procured the contravention; or
                  1. has induced, whether by threats or promises or otherwise, the contravention; or
                    1. has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention; or
                      1. has conspired with others to effect the contravention.