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Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

67: Other advertising of credit ratings

You could also call this:

"Rules for advertising your credit rating to attract investors"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you can advertise your credit rating, but you must clearly state the rating, the name of the agency that gave it, and where people can find more information about the rating scale on a website. You can specify a website that you or the rating agency maintains for people to find this information. When you advertise your credit rating, you must follow these rules so you do not break the law.

If you advertise your credit rating, it means you are sharing this information with the public in New Zealand to get business from investors. A relevant investor is someone you offer services to, as described in clause 2(2)(a) of Schedule 2. You must be careful how you advertise your credit rating to avoid problems.

This rule does not apply if you advertise on your own website, but you must still follow section 66 rules. If you do not follow this rule, you can get in trouble and have to pay a fine of up to $50,000 or an infringement fee of $20,000. You can also be fined by a court if you break this rule, and the fine can be up to $50,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475777.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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66: Disclosure of credit rating on licensed deposit taker's Internet site, or

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

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68: Licensed deposit taker must not disclose or advertise credit ratings from non-approved agencies, or

"Licensed deposit takers can't share or advertise unapproved credit ratings with investors."

Part 3Regulation of deposit takers
Credit rating

67Other advertising of credit ratings

  1. A licensed deposit taker may distribute an advertisement that refers to its current credit rating, or to any part of the rating, only if the advertisement also states clearly and prominently—

  2. the rating; and
    1. the name of the agency that gave the rating; and
      1. that a description of any scale of which the rating forms part is available on a specified Internet site.

        1. The Internet site that is specified may be an Internet site maintained by, or on behalf of, the licensed deposit taker or the agency that gave the rating.

        2. For the purposes of this section and section 68,—

        3. an advertisement is distributed if it is communicated to the public in New Zealand (with a view to obtaining business from relevant investors) by newspaper, magazine, brochure, pamphlet, notice, circular, radio or television broadcast, film, the Internet, or other means; and
          1. relevant investor means a person to whom the licensed deposit taker makes an offer referred to in clause 2(2)(a) of Schedule 2.

            1. However, this section does not apply to advertising on an Internet site that is maintained by, or on behalf of, a licensed deposit taker (but section 66 will apply).

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

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