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Deposit Takers Act 2023

Supervision of deposit takers - Remedial notices and plans

120: Bank’s consideration of remedial plan

You could also call this:

"The Bank checks and decides on a deposit taker's plan to fix problems."

Illustration for Deposit Takers Act 2023

When a licensed deposit taker gives a remedial plan to the Bank, the Bank can approve it. The Bank can also ask the deposit taker to change the plan and send it back by a certain date. The Bank will then decide whether to approve or reject the changed plan.

If the Bank does not like the plan, it can reject it. The Bank's decision on a remedial plan does not stop it from issuing another notice under section 119(2)(a) if needed. You can find more information about this in the related section.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS496780.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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119: Bank may require licensed deposit taker to take action in relation to contravention, or

"The Bank can tell a deposit taker to fix a problem if they break a rule or might break one."

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121: Bank may require amendment of remedial plan, or

"The Bank can ask a deposit taker to change its plan to fix problems."

Part 4Supervision of deposit takers
Remedial notices and plans

120Bank’s consideration of remedial plan

  1. If a licensed deposit taker gives a remedial plan to the Bank, the Bank may—

  2. approve the remedial plan; or
    1. require the deposit taker to amend the remedial plan and resubmit it to the Bank by a specified date for approval or rejection; or
      1. reject the remedial plan.

        1. Nothing in this section limits the Bank’s power to issue a further remedial notice under section 119(2)(a).