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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Cover pool monitor

420: Cover pool monitor must perform certain services under contract

You could also call this:

"The cover pool monitor's job is to check and report on certain tasks."

Illustration for Deposit Takers Act 2023

You have a role called a cover pool monitor. You must do certain jobs as part of your contract. You have to check if some tests are correct and if the issuer is following the rules as stated in section 416(1)(a) and section 416(1)(b). You have to give the issuer reports on these matters every 12 months. You also have to give reports every 3 months if you are not satisfied with the tests or the issuer's compliance with the rules as stated in section 416(1)(a) and section 416(1)(b). You keep giving 3-monthly reports until you are satisfied the issuer has fixed the problems. You also have to report on any other matters that the regulations require.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS498013.

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419: Cover pool monitor, or

"A person who checks investments to ensure they are safe and follow the rules."

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421: Limitation on application of resolution, statutory management, etc, provisions to covered bond SPV, or

"Rules to protect property in a covered bond programme when an issuer has problems"

Part 7Crisis management and resolution
Covered bonds: Cover pool monitor

420Cover pool monitor must perform certain services under contract

  1. A cover pool monitor must be required to do the following under the contract of appointment:

  2. assess, at a given point in time, and in accordance with any agreed procedures specified in the covered bond programme,—
    1. the arithmetical accuracy of the tests carried out in accordance with section 416(1)(a); and
      1. the issuer's compliance with the requirements of section 416(1)(b); and
      2. provide the issuer with reports on the matters required under paragraph (a) at intervals of not more than 12 months; and
        1. provide reports at intervals of not more than 3 months if the cover pool monitor is not satisfied—
          1. as to the arithmetical accuracy of the tests carried out in accordance with section 416(1)(a); or
            1. that the issuer has complied with the requirements of section 416(1)(b); and
            2. if paragraph (c) applies, continue to provide 3-monthly reports until the cover pool monitor is satisfied that the issuer has remedied those matters; and
              1. report on all other matters required by the regulations (if any).

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