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Deposit Takers Act 2023

Supervision of deposit takers - Investigations

126: Bank may appoint investigator

You could also call this:

"The Bank can choose someone to investigate if a deposit taker breaks the rules."

Illustration for Deposit Takers Act 2023

The Bank can appoint someone to investigate if they think a deposit taker or another person has done something wrong. You might be wondering what kind of wrong things they are looking for - it could be that someone has not followed the rules to be licensed, or they have broken a prudential obligation, which is a rule to keep people's money safe. The Bank can also investigate if they think a deposit taker is being fraudulent or reckless.

If the Bank thinks it is necessary, they can choose someone to be an investigator to look into what is happening with a person or deposit taker. This investigator will be someone who works for the Bank, or someone else who the Bank thinks is qualified to do the job.

The Bank can use this investigator to gather more information, but this does not stop them from using other ways to get information, as outlined in subpart 1 of this Part, which is about how the Bank can collect information to make sure deposit takers are 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=LMS492635.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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125: Offence to contravene remedial notice, fail to give amended remedial plan, or fail to take steps to comply with remedial plan, or

"Breaking deposit taker rules can lead to a big fine of up to $2,500,000."

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127: Power to obtain information, or

"Investigators can ask for information and documents from companies and people to help with their enquiries"

Part 4Supervision of deposit takers
Investigations

126Bank may appoint investigator

  1. This section applies if the Bank has reasonable cause to suspect that 1 or more of the following apply:

  2. a deposit taker or other person has failed to comply with subpart 1 of Part 2 (requirements to be licensed and not to hold out):
    1. a licensed deposit taker or other person has contravened, is contravening, or is likely to contravene a prudential obligation:
      1. a licensed deposit taker has been or is operating fraudulently or recklessly.

        1. If the Bank considers it necessary or desirable for the purposes of performing or exercising its functions, powers, or duties under this Act, the Bank may appoint, in writing, a person (an investigator) to carry out an investigation of the affairs of a person referred to in subsection (1).

        2. The investigator must be an employee of the Bank or any other person who the Bank is satisfied is suitably qualified.

        3. This subpart does not limit the Bank’s information-gathering powers under subpart 1 of this Part.