Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Supervision of deposit takers - Reporting duty

116: Licensed deposit taker must report contraventions

You could also call this:

"Banks must tell the Bank if they break important rules."

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must report to the Bank if you think you have broken a prudential obligation in a significant way. You have to make this report as soon as you can after you start thinking you might have broken the rule. Your report to the Bank must include details about what you believe happened, why you think it happened, and any other information that the regulations say you need to provide.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS496345.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

115: Licensed deposit taker must monitor compliance, or

"Licensed deposit takers must check they are following the rules."

Next

117: Offence to fail to monitor compliance and report contraventions, or

"Breaking the rules: deposit takers must check and report if they're doing something wrong"

Part 4Supervision of deposit takers
Reporting duty

116Licensed deposit taker must report contraventions

  1. This section applies if a licensed deposit taker believes that it has contravened, may have contravened, or is likely to contravene a prudential obligation in a material respect.

  2. The licensed deposit taker must, as soon as practicable after it forms the belief, give the Bank a report containing—

  3. details of the belief; and
    1. the licensed deposit taker’s grounds for the belief; and
      1. all other information prescribed by the regulations (if any).