Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Enforcement - Pecuniary penalty - Defences

161: Defence for person that is involved in contravention

You could also call this:

"When you're involved in breaking a rule, you can explain why it's not your fault"

Illustration for Deposit Takers Act 2023

If you are involved in breaking a rule, you might have a defence. This means you can say why you should not be in trouble. You can use this defence if someone else broke the rule and you were involved.

You can say you relied on information from someone else, and that is why you were involved. This someone else cannot be someone who works for you. You can also say you did everything you could to make sure the other person followed the rules. If you can prove one of these things, you might have a defence against being in trouble.

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 It might be out of date or be missing some parts.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=LMS497410.

Topics:
Business > Industry rules
Previous

160: Defences for person that contravenes prudential obligation, or

"Breaking a money rule: when you have a good excuse"

Next

162: Court must order that recovery from pecuniary penalty be applied to Bank’s actual costs, or

"Court decides how penalty money is used to pay Bank's court costs first"

Part 5Enforcement
Pecuniary penalty: Defences

161Defence for person that is involved in contravention

  1. This section applies if—

  2. a person (B) has contravened an applicable standard; and
    1. another person (C) is involved in the contravention.

      1. In a proceeding under this subpart against C for involvement in the contravention, it is a defence if C proves that—

      2. C’s involvement in the contravention was due to reasonable reliance on information supplied by another person, other than a director, an employee, or an agent of C; or
        1. C took all reasonable steps to ensure that B complied with the applicable standard.