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New Zealand law explained for everyone

Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Obtaining significant influence

39: Person who obtains significant influence over licensed deposit taker must obtain Bank’s approval

You could also call this:

"You need Bank approval to control a New Zealand deposit taker if you have a big say in its decisions."

Illustration for Deposit Takers Act 2023

If you want to have a lot of control over a licensed deposit taker, you need to get approval from the Bank first. You have a lot of control if you can decide 25% or more of the voting rights in the deposit taker, or if you can choose 50% or more of its directors. This also applies if you have control together with one or more other people.

If you are working with other people to have control over a deposit taker, the Bank considers you to be acting together. The Bank also considers you to be working together if one person usually does what the other person wants. You can find more information about this in section 40.

Note that this rule does not apply to deposit takers from other countries, you should look at section 40 for those cases. You must get approval from the Bank before you can have a lot of control over a licensed deposit taker in New Zealand. The Bank has rules to make sure deposit takers are safe and secure for everyone.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS493061.

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Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Obtaining significant influence

39Person who obtains significant influence over licensed deposit taker must obtain Bank’s approval

  1. A person (A) must obtain the approval of the Bank before giving effect to a transaction if the transaction would result in A obtaining significant influence over a licensed deposit taker.

  2. In this section and section 40, a person (A) obtains significant influence over a licensed deposit taker if—

  3. A obtains the power (whether directly or indirectly) to—
    1. exercise, or control the exercise of, 25% or more of the voting rights in the deposit taker; or
      1. appoint 50% or more of the directors of the deposit taker; or
      2. A obtains, together with 1 or more specified persons, the power (whether directly or indirectly) to—
        1. exercise, or control the exercise of, 25% or more of the voting rights in the deposit taker; or
          1. appoint 50% or more of the directors of the deposit taker.

          2. In this section and section 40, specified person, in relation to A, means—

          3. a person who is acting or will act jointly or in concert with A in respect of exercising, or controlling the exercise of, a power referred to in subsection (2)(b)(i) or (ii); or
            1. a person who acts, or is accustomed to acting, in accordance with the wishes of A.

              1. Subsection (1) does not apply in relation to an overseas licensed deposit taker (see instead section 40).