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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

26: Licensed deposit taker must obtain Bank’s approval before new director or senior manager is appointed

You could also call this:

"Get Bank approval before hiring a new boss or manager at your deposit-taking business"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must get approval from the Bank before appointing a new director or senior manager. You need to ask the Bank for approval and include a fit and proper certificate for the new person. Your request must be made in the way the Bank says it should be.

When you ask for approval, you must follow the Bank's rules. The Bank will look at your request and decide if it approves the new director or senior manager. This rule does not apply to someone who is appointed as a senior manager temporarily, if certain conditions are met, as outlined in section 81(1)(f).

It also does not apply to overseas licensed deposit takers, who should look at section 30 instead.

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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=LMS498852.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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"The Bank can change the rules of a licence and must tell you first."

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27: Offence to appoint new director or senior manager without approval, or

"Breaking the law by hiring a new boss without permission can cost you up to $500,000."

Part 2Licensing of deposit takers
Fit and proper requirements

26Licensed deposit taker must obtain Bank’s approval before new director or senior manager is appointed

  1. A licensed deposit taker must obtain the approval of the Bank before a new director or senior manager is appointed.

  2. A request for the Bank to give its approval under this subpart must—

  3. contain or be accompanied by a fit and proper certificate for the new director or senior manager; and
    1. otherwise be made in the manner that is specified by the Bank.

      1. This section does not apply in relation to—

      2. a person who is appointed as a senior manager on an interim basis if the terms and conditions specified under section 81(1)(f) are complied with; or
        1. an overseas licensed deposit taker (see instead section 30).