Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Supervision of deposit takers - Power to require warning to be disclosed

133: Bank may require its warning to be disclosed

You could also call this:

"Banks can make companies tell you if they're doing something wrong"

Illustration for Deposit Takers Act 2023

The Bank can tell a deposit taker to share a warning with you if they think the deposit taker has done something wrong. The Bank might think the deposit taker has broken a rule, is operating fraudulently, or is being reckless. The Bank will give the deposit taker a warning and then tell them to share it with you.

The Bank can order the deposit taker to put the warning on their website or include it in messages they send to you. They might also have to add the warning to documents they give you, like when they are required to by law. This is so you are aware of what is going on with the deposit taker.

When the Bank says "relevant legislation", they mean laws that are related to how deposit takers operate, like the Financial Markets Authority Act 2011, or laws that help stop money laundering, like the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. These laws are in place to help keep you and your money safe. The Bank wants to make sure you have all the information you need to make good decisions.

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 It might be out of date or be missing some parts.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=LMS497355.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rules
Previous

132: Offence to contravene confidentiality order, or

"Breaking a secrecy order is a crime"

Next

134: Procedural matters relating to order, or

"The Bank must tell you what's happening and give you a chance to comment before making a decision."

Part 4Supervision of deposit takers
Power to require warning to be disclosed

133Bank may require its warning to be disclosed

  1. This section applies if—

  2. the Bank has reasonable cause to suspect that 1 or more of the following apply:
    1. a licensed deposit taker or other person has contravened, is contravening, or is likely to contravene a prudential obligation:
      1. a licensed deposit taker has been or is operating fraudulently or recklessly; and
      2. the Bank has issued a warning to the licensed deposit taker or other person (A) about the matter referred to in paragraph (a).

        1. The Bank may, by notice given to A, order A, or all or any associated persons of A, or both to do 1 or more of the following:

        2. prominently disclose a copy of the warning on 1 or more Internet sites maintained by or on behalf of A or any of those associated persons:
          1. ensure that every communication of the kind that is specified in the order and that is distributed by or on behalf of A or any of those associated persons contains a copy of the warning in a prominent position or is accompanied by a copy of the warning:
            1. ensure that any document of the kind that is specified in the order and that is required by any relevant legislation to be given by A, or any of those associated persons, to another person contains, or is amended to contain, a copy of the warning in a prominent position or is accompanied by a copy of the warning.

              1. In this section, relevant legislation means any of the following:

              2. prudential legislation:
                1. financial markets legislation within the meaning of section 4 of the Financial Markets Authority Act 2011:
                  1. the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and any regulations made under that Act.