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Deposit Takers Act 2023

Licensing of deposit takers - Conditions of licences

24: Bank may impose conditions on licence

You could also call this:

"The Bank can add rules to a licence to help keep people's money safe"

Illustration for Deposit Takers Act 2023

When the Bank gives a licence to someone, they can add conditions to it. The Bank can say what standards the person must follow and what requirements they must meet. They can also add conditions that limit the size or type of business the person can have.

The Bank can impose conditions on what activities the person can do. If the person has not yet started their business, the Bank can say when they must start and how big their business must be. The Bank can also require the person or their directors to confirm they are meeting certain obligations.

You can check subpart 2 of Part 5 to see what happens if someone breaks one of these conditions. The Bank can add many different types of conditions to a licence. These conditions help the Bank make sure the person is running their business safely and following the rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS492387.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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"What's in the list of licensed deposit takers and how it's organised"

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25: Bank may modify conditions of licence, or

"The Bank can change the rules of a licence and must tell you first."

Part 2Licensing of deposit takers
Conditions of licences

24Bank may impose conditions on licence

  1. The Bank may issue a licence to a person (A) subject to any of the following conditions:

  2. a condition that identifies the standards that A must comply with:
    1. a condition that identifies requirements in standards that apply to A:
      1. conditions that provide for anything that the standards say may or must be provided for by conditions:
        1. conditions that impose limits or restrictions on either or both of the following:
          1. the size or nature of the whole or any part of A’s business or proposed business:
            1. any activities that may be carried out by A:
            2. in the case of a person that has not yet commenced carrying on the business of borrowing and lending money in New Zealand, either or both of the following:
              1. a condition that specifies the time period within which A must commence carrying on that business in New Zealand:
                1. a condition that specifies the extent of that business in New Zealand that A must have within a specified period:
                2. a condition that requires A or A’s directors (or both) to certify that 1 or more of the following have been complied with (being certification that is given in the manner specified by the Bank):
                  1. any prudential obligations:
                    1. any requirements of any other legislation that are imposed on A as a licensed deposit taker (for example, financial reporting obligations).

                    2. See subpart 2 of Part 5, which provides for a court to impose a pecuniary penalty for a contravention of a condition.