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New Zealand law explained for everyone

Deposit Takers Act 2023

Licensing of deposit takers - Cancellation

54: Process for cancelling licence

You could also call this:

"How the Bank cancels a licence: a step-by-step process"

Illustration for Deposit Takers Act 2023

If you have a licence, the Bank must do some things before they can cancel it. The Bank must talk to the FMA, which is a group that helps keep an eye on money and investments in New Zealand. You will also get a notice from the Bank saying they want to cancel your licence.

The notice will tell you why the Bank wants to cancel your licence and give you a date to respond if you do not want it cancelled. You have at least 20 working days to tell the Bank your thoughts. The Bank will think about what you say before making a decision.

But if you asked the Bank to cancel your licence, or if your company has been closed down, the Bank does not have to give you notice or listen to your thoughts before cancelling your licence.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS492653.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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53: Cancellation of licence, or

"When the Bank can cancel a deposit taker's licence for breaking rules or not meeting conditions."

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55: Notice of cancellation, or

"Telling people when a licence is cancelled"

Part 2Licensing of deposit takers
Cancellation

54Process for cancelling licence

  1. The Bank must, before cancelling a licence held by a person (A),—

  2. consult the FMA; and
    1. give A notice of the Bank’s intention to cancel the licence; and
      1. have regard to any objections that are received before the close of the date specified under subsection (2)(b).

        1. The notice given to A must—

        2. contain, or be accompanied by, a statement of the Bank’s reasons for proposing to cancel the licence; and
          1. specify the date by which A must deliver any objection to the Bank (which must be not less than 20 working days after the date of the notice).

            1. Subsection (1)(b) and (c) does not apply if—

            2. A asked the Bank to cancel its licence; or
              1. A has been liquidated, wound up, or dissolved or has otherwise ceased to exist.