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Deposit Takers Act 2023

Licensing of deposit takers - Conditions of licences

25: Bank may modify conditions of licence

You could also call this:

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

Illustration for Deposit Takers Act 2023

The Bank can change the conditions of a licence after it has been issued. You will get a notice from the Bank if they want to add, remove, or change any conditions. The Bank can do this at any time.

The Bank must tell you what they plan to do at least 7 days before they make any changes. You will have a chance to tell the Bank what you think about their plans. The Bank will consider what you say before they make any decisions.

When the Bank tells you about their plans, they must explain why they want to make changes to your licence conditions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS492428.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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24: Bank may impose conditions on licence, or

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

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26: Licensed deposit taker must obtain Bank’s approval before new director or senior manager is appointed, or

"Get Bank approval before hiring a new boss or manager at your deposit-taking business"

Part 2Licensing of deposit takers
Conditions of licences

25Bank may modify conditions of licence

  1. The Bank may, at any time after a licence is issued, by notice to the licensed deposit taker,—

  2. impose conditions of the licence (whether or not the licence is already subject to conditions); or
    1. vary, remove, add to, or substitute any conditions of the licence.

      1. The Bank must, before exercising the power,—

      2. give the deposit taker not less than 7 days’ notice of the Bank’s intention to do so; and
        1. give the deposit taker a reasonable opportunity to make submissions to the Bank; and
          1. have regard to those submissions.

            1. The notice given to the deposit taker must contain, or be accompanied by, a statement of the Bank’s reasons for proposing to exercise the power.