Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

66: Disclosure of credit rating on licensed deposit taker's Internet site

You could also call this:

"Banks and lenders must show their credit rating on their website so you can see how safe they are."

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, this law applies to you if you have a current credit rating or you must follow section 59. You must also have a website with information about debt securities you offer in New Zealand. You need to make sure your website clearly shows your current credit rating, the name of the agency that gave you the rating, and the rating scale used. You can either show this information on your website or have a clear link to another website that shows this information.

If you do not follow this law, you can get an infringement fee of $20,000 or a fine of up to $50,000 from a court. You must comply with this law to avoid these penalties. This law is in place to ensure you provide clear information to people who use your website.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475724.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rules
Previous

65: Licensed deposit taker must notify Bank of credit watch warning, or

"Licensed deposit takers must tell the Bank within 20 working days if they get a credit watch warning about their credit rating."

Next

67: Other advertising of credit ratings, or

"Rules for advertising your credit rating to attract investors"

Part 3Regulation of deposit takers
Credit rating

66Disclosure of credit rating on licensed deposit taker's Internet site

  1. This section applies to a licensed deposit taker (A) if—

  2. A is required to comply with section 59 or A otherwise has a current credit rating given by an approved rating agency; and
    1. an Internet site that is maintained by, or on behalf of, A contains information or advertising about debt securities issued by A that are offered in New Zealand.

      1. A must ensure that the Internet site—

      2. states clearly and prominently—
        1. A's current credit rating; and
          1. the name of the agency by which the rating was given; and
            1. the rating scale of which the rating forms part; or
            2. contains a prominent link to another Internet site that clearly and prominently states the matters specified in paragraph (a).

              1. A licensed deposit taker that contravenes this section commits an infringement offence and is liable to—

              2. an infringement fee of $20,000; or
                1. a fine imposed by a court not exceeding $50,000.