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Deposit Takers Act 2023

Enforcement - Power to accept undertakings

155: Proceedings for alleged contravention

You could also call this:

"What happens if you're accused of breaking the Deposit Takers Act 2023 rules"

Illustration for Deposit Takers Act 2023

If you break the Deposit Takers Act 2023 or its regulations, you might face proceedings. But you cannot be taken to court if you have made an undertaking about the contravention and you are sticking to it. You also cannot be taken to court if you have made an undertaking, completed it, and done everything you promised to do. The Bank can accept an undertaking from you even if court proceedings have already started. If the Bank accepts your undertaking, they must try to stop the court proceedings as soon as possible, but only for the parts that relate to the contravention you made the undertaking about.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS497391.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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154: Court must take into account certain matters, or

"Courts consider what happened and who was affected when making decisions about deposit takers"

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156: Licensed deposit taker or other person may withdraw or amend undertaking, or

"A bank must agree before you can change or cancel a promise you made to them."

Part 5Enforcement
Power to accept undertakings

155Proceedings for alleged contravention

  1. No proceedings may be brought for a contravention or an alleged contravention of this Act or the regulations against—

  2. a person who made an undertaking in relation to that contravention or alleged contravention, while the undertaking is enforceable and there is no contravention of the undertaking:
    1. a person who made, and has completely discharged, an undertaking in relation to that contravention or alleged contravention.

      1. The Bank may accept an undertaking in relation to a contravention or an alleged contravention before proceedings in relation to that contravention or alleged contravention have been completed.

      2. If the Bank accepts an undertaking before the proceedings are completed, the Bank must take all reasonable steps to have the proceedings discontinued as soon as practicable (to the extent that the proceedings relate to that contravention or alleged contravention).