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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

32: Deposit taker’s duty on becoming aware of fit and proper concerns

You could also call this:

"What deposit takers must do if they think a director or manager is not suitable for their job"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you have a duty when you find out something that makes you think one of your directors or senior managers is not a fit and proper person for their job. You must tell the Bank as soon as you can about what you have found out. You need to share all the information you have about this matter.

When you are deciding if someone is a fit and proper person, you must think about the things that are specified in an applicable standard. This helps you make a fair decision about the person. A director or senior manager includes someone who might get one of these jobs, and you have asked for approval for them under section 26.

If you are unsure about what makes someone a fit and proper person, you can look at the standards that apply to you. You must follow these standards when you are making decisions about your directors and senior managers. This is an important part of being a licensed deposit taker.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS492754.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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31: Bank may require further fit and proper certificate, or

"The bank can ask for extra checks on important people in charge of deposit takers."

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33: Offence to fail to disclose fit and proper concerns, or

"Telling someone about concerns is a must, or you might get a big fine."

Part 2Licensing of deposit takers
Fit and proper requirements

32Deposit taker’s duty on becoming aware of fit and proper concerns

  1. This section applies if a licensed deposit taker becomes aware of information on the basis of which it could reasonably form the opinion that a director or senior manager of the deposit taker is not, or is not likely to be, a fit and proper person to hold the relevant position.

  2. The deposit taker must, as soon as practicable, disclose to the Bank all information relevant to that matter that is in the possession or under the control of the deposit taker.

  3. In forming an opinion under subsection (1), the licensed deposit taker must have regard to the fit and proper matters specified in an applicable standard.

  4. In this section, director or senior manager of the deposit taker includes a proposed new director or senior manager in respect of whom the deposit taker has requested approval under section 26.