Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

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

You could also call this:

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

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must not tell investors about credit ratings from agencies that are not approved. You also must not advertise your deposit-taking business using ratings from non-approved agencies. You do not have to follow this rule if you are telling an employee or someone closely related to your business about the rating. If you break this rule, you can get a fine of up to $50,000 or an infringement fee of $20,000.

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 It might be out of date or be missing some parts.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=LMS475781.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

67: Other advertising of credit ratings, or

"Rules for advertising your credit rating to attract investors"

Next

69: Licensed deposit taker must give public notice of downgrade, or

"Bank or lender must tell public if their credit rating gets worse"

Part 3Regulation of deposit takers
Credit rating

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

  1. A licensed deposit taker must not—

  2. disclose to a relevant investor a rating from a non-approved agency; or
    1. distribute an advertisement for any of the deposit taker's deposit-taking business that refers to a rating from a non-approved agency.

      1. Subsection (1)(a) does not apply to a disclosure to an associated person or employee of the deposit taker.

      2. In this section, rating from a non-approved agency—

      3. means, in relation to a licensed deposit taker, an assessment of its credit or creditworthiness that is in substance a credit rating or financial strength rating (whether called a rating, grading, scoring, ranking, or by any other name) that is issued or given by an agency that is not an approved rating agency; but
        1. does not include a credit rating referred to in section 63(3).

          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.