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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:

"A cover pool monitor's job is to check and report on certain things to make sure everything is done correctly."

Illustration for Deposit Takers Act 2023

When you are a cover pool monitor, you must do certain things as part of your contract. You have to check if the tests done under section 416(1)(a) are correct and if the issuer is following the rules in section 416(1)(b). You also have to give the issuer reports on these things every 12 months. You have to give reports every 3 months if you are not happy with the tests or if the issuer is not following the rules. If you are not happy, you keep giving reports every 3 months until you are satisfied the issuer has fixed the problems.

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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 cover pool monitor is an independent checker who makes sure a company is doing the right thing with its cover pool."

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

"Rules to help fix troubled companies don't fully apply to special companies called covered bond SPVs."

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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