Deposit Takers Act 2023

Supervision of deposit takers - Miscellaneous

147: Effect of final decision that exercise of powers under section 99 or 127 unlawful

You could also call this:

"What happens if a court decides the Bank or investigator used their powers unfairly under sections 99 or 127."

Illustration for Deposit Takers Act 2023

If a court decides that the Bank or an investigator did something wrong when using their powers under section 99 or 127, they must fix the problem. You need to know that the Bank or investigator must destroy any information they got from you under those sections as soon as possible. They must also return any documents they took from you and destroy any copies they made.

The Bank or investigator cannot use any information they got from you under those sections in court, unless the court says it is okay. This means that if you gave them information, it cannot be used as evidence in a civil case unless the court is sure it was gotten fairly. It also cannot be used in a criminal case if the Evidence Act 2006 says it should be excluded, for example under section 30 of the Evidence Act 2006.

However, the court can decide that instead of destroying the information, the Bank or investigator can keep it, but only if the court says so and only under certain conditions.

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This page was last updated on 6 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS492640.

Topics:

Crime and justice > Courts and legal helpMoney and consumer rights > Banking and loansBusiness > Industry rules

146: Effect of proceedings, or

"What happens when you take someone to court about using a power given to them by the law"

148: Bank may accept voluntary undertaking, or

"The Bank can accept a promise to follow the rules from a deposit taker."

Part 4Supervision of deposit takers
Miscellaneous

147Effect of final decision that exercise of powers under section 99 or 127 unlawful

In any case where it is declared in a final decision given in a proceeding in respect of the exercise or purported exercise of powers conferred by a relevant section that the exercise of any powers conferred by that section is unlawful, to the extent to which the exercise of those powers is declared unlawful,—
the Bank or an investigator must ensure that, as soon as is reasonably practicable after the decision of the court is given,—
1. any information supplied by a person under the relevant section is destroyed:
2. any documents or extracts from documents obtained as a consequence of an inspection made under the relevant section are returned to the person who previously had possession of those documents or previously had them under their control, and any copies of those documents or extracts are destroyed:
3. any information derived from or based upon any such information or documents or extracts is destroyed:
no information supplied by a person under, or purportedly under, a relevant section, and no documents or extracts from documents obtained under, or purportedly under, a relevant section,—
1. are admissible in evidence in any civil proceeding unless the court hearing the proceeding in which the evidence is sought to be adduced is satisfied that there was no unfairness in obtaining the evidence:
2. are admissible as evidence in any criminal proceeding if the evidence is excluded under section 30 of the Evidence Act 2006:
3. may be used in connection with the exercise of any power conferred on the Bank or an investigator unless the court that declared the exercise of the powers to be unlawful is satisfied that there was no unfairness in obtaining the evidence.

However, the court may, in the court’s discretion, order that any information, record, or copy of any document or extract from a document may, instead of being destroyed, be retained by the Bank or an investigator subject to any terms and conditions that the court imposes.