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Deposit Takers Act 2023

Depositor compensation scheme - Statement of funding approach

247: Contents of statement

You could also call this:

"What's included in the Depositor Compensation Scheme statement"

Illustration for Deposit Takers Act 2023

When you look at the statement about the Depositor Compensation Scheme, you will see it must have certain information. The statement must contain information about the estimated costs of the scheme, including the likelihood of the Bank issuing notices and estimates of costs as referred to in section 238(2). It must also have information about the assumptions used to prepare these estimates.

You will also see information about how the fund will be invested, for example, how to keep it liquid. The statement must set out the Minister's approach to managing the Crown's financial position in connection with the scheme, including how the Minister will comply with their duty under subpart 8.

The statement must say whether the levies will be set to reach a target level or band, and if so, what that level or band is, and how long it will take to get there. It must also state the reasons for choosing that level or band and time frame.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS501292.

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Part 6Depositor compensation scheme
Statement of funding approach

247Contents of statement

  1. The statement must—

  2. contain information about the estimated costs of the scheme under this Part, including—
    1. information on the likelihood of the Bank issuing 1 or more specified event notices during the period of the statement; and
      1. estimates of the costs referred to in section 238(2) during the period of the statement, including estimates of the cost of entitlements in connection with the Bank issuing 1 or more specified event notices during the period of the statement; and
      2. contain information about the assumptions and evidence used to prepare the estimates and other information under paragraph (a); and
        1. set out requirements for the investment of the fund (for example, requirements relating to liquidity); and
          1. set out the Minister’s proposed approach to managing the financial position of the Crown in connection with the scheme, including how the Minister’s duty under subpart 8 would likely be complied with if that subpart applies; and
            1. state whether the levies will be set with a view to the fund balance reaching, and being maintained at, a target level or within a target band and, if so,—
              1. that level or band; and
                1. the estimated time frame for the fund balance to reach that level or band; and
                2. state the reasons for the level or band, and time frame, under paragraph (e).