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Deposit Takers Act 2023

Enforcement - Pecuniary penalty - Amount of pecuniary penalty

158: Maximum amount of pecuniary penalty

You could also call this:

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

Illustration for Deposit Takers Act 2023

If you are a company that breaks a rule, you might have to pay a fine. The maximum fine is either $5,000,000 or 0.1% of your company's total assets, whichever is greater. Your company's total assets are the assets shown in your financial statements.

If your company is based overseas, the fine is based on the assets of your New Zealand business. You calculate this using the financial statements for your New Zealand business. This helps work out the maximum fine you might have to pay.

If you are an individual who breaks certain rules, you might have to pay a fine of up to $1,000,000. This applies if you break rules like those in section 93 or section 94. The fine is the same whether you break the rule directly or are involved in someone else breaking it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475605.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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157: When court may make pecuniary penalty orders, or

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

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159: Considerations for court, or

"What the court thinks about when making a decision about something related to the Deposit Takers Act 2023"

Part 5Enforcement
Pecuniary penalty: Amount of pecuniary penalty

158Maximum amount of pecuniary penalty

  1. The maximum amount of a pecuniary penalty that a body corporate may be ordered to pay for a contravention, or involvement in a contravention, of an applicable standard or a condition of a licence is the greater of—

  2. $5,000,000; and
    1. 0.1% of the total assets of the body corporate and its subsidiaries (if any) as at the balance date of the accounting period that precedes the time at which the contravention first occurs (as specified in the body corporate’s financial statements or the group financial statements of the body corporate and those subsidiaries).

      1. If the body corporate is an overseas person, the total assets must be calculated by reference to the total assets of the New Zealand business of the body corporate and its subsidiaries (if any) as specified in the financial statements or the group financial statements for that New Zealand business.

      2. The maximum amount of a pecuniary penalty that an individual may be ordered to pay for a contravention of section 93 or 94, or involvement in a contravention of an applicable standard, is $1,000,000.