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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Conditions

92: Standards may provide for matters to be specified by conditions

You could also call this:

"Rules can be tailored to fit each deposit taker's situation using special conditions."

Illustration for Deposit Takers Act 2023

The law says standards can have rules that are specified by conditions. You need to understand that this is so the rules can fit the situation of each deposit taker. The Bank can decide to include a rule in a standard that will be specified in a licence condition. The Bank has to think about a few things before making this decision, like whether the rule should be in the standard or the licence condition. The Bank must make sure the standard sets a good range for the rule or explains how the Bank will decide on the condition.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS493432.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"Sometimes you need the Bank's okay to do certain things, and you have to follow their rules to get it."

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Part 3Regulation of deposit takers
Standards: Conditions

92Standards may provide for matters to be specified by conditions

  1. The purpose of this section is to provide the flexibility to allow the requirements or other matters in standards to be set in a manner that takes into account the circumstances of particular deposit takers.

  2. A standard may provide for a requirement or other matter to be specified by a condition of a licence if the Bank, after having regard to the considerations under subsection (3), is satisfied as referred to in subsection (4).

    Example

    A standard specifies a range of quantitative capital requirements and provides for the requirements that apply to a particular deposit taker to be set within that range in the conditions of the deposit taker’s licence.

  3. The Bank must have regard to—

  4. the purpose of this section; and
    1. whether the requirement or other matter would be more appropriately dealt with in standards only (rather than being specified by a condition of a licence).

      1. The Bank must be satisfied that the standard—

      2. sets an appropriate range or limit within which the requirement or matter may be specified by the condition; or
        1. sets out an appropriate manner for the Bank to decide on the terms of the condition (for example, by specifying the matters that the Bank must have regard to, or be satisfied of, when deciding what condition is to apply).