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Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Significant transactions

41: Licensed deposit taker must obtain Bank’s approval before entering into significant transaction

You could also call this:

"Get Bank approval before making big business changes"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must get approval from the Bank before you enter into a significant transaction. A significant transaction can be when a deposit taker transfers all or a big part of its business to another person. This can happen when an overseas deposit taker transfers its New Zealand business or when any other deposit taker transfers its business.

You also need approval for other types of transactions that are specified in certain standards as significant transactions. These standards will help decide what makes a transaction significant. Whether a part of a business is big enough to be considered material will be determined by these standards.

When the law talks about a material part of a business, it means a part that is important or significant according to the standards. You will need to follow these standards to know if a transaction is significant and if you need to get approval from the Bank. The Bank's approval is necessary before you can enter into any significant transaction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS496059.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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40: Overseas licensed deposit taker must notify Bank if person obtains significant influence, or

"Overseas banks must tell the Bank if someone important gains control over them."

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42: Licensed deposit taker must obtain Bank’s approval before amalgamation, or

"Get Bank approval before merging with another company"

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Significant transactions

41Licensed deposit taker must obtain Bank’s approval before entering into significant transaction

  1. A licensed deposit taker must obtain the approval of the Bank before entering into a significant transaction.

  2. In this Act, significant transaction means any of the following:

  3. a transaction that involves,—
    1. in the case of an overseas deposit taker, the transfer of all or a material part of the deposit taker’s New Zealand business to another person; or
      1. in the case of any other deposit taker, the transfer of all or a material part of the deposit taker’s business to another person:
      2. any other transaction of a kind that is specified in an applicable standard as a significant transaction in respect of which approval is required under this subpart.

        1. Whether a part of a business is material must be determined in accordance with an applicable standard.