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Deposit Takers Act 2023

Depositor compensation scheme - Accountability

255: Board must ensure that proper accounting records are kept

You could also call this:

"The bank's board must keep accurate and easy-to-check financial records."

Illustration for Deposit Takers Act 2023

The board of the Bank must make sure that proper accounting records are kept. You need to know that these records must correctly record and explain the transactions of the fund. The records must also show the financial position of the fund at any time with reasonable accuracy.

The accounting records must help the board members ensure the financial statements of the fund comply with the rules. They must also make it easy to audit the financial statements of the fund.

The accounting records can be in written form or in a format that is easily accessible and can be converted into written form.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS505038.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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254: Audit of financial statements, or

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Part 6Depositor compensation scheme
Accountability

255Board must ensure that proper accounting records are kept

  1. The board of the Bank must cause accounting records to be kept that—

  2. correctly record and explain the transactions of the fund; and
    1. will at any time enable the financial position of the fund to be determined with reasonable accuracy; and
      1. will enable the members of the board of the Bank to ensure that the financial statements of the fund comply with this subpart; and
        1. will enable the financial statements of the fund to be readily and properly audited.

          1. The accounting records must be in written form or in a manner in which they are easily accessible and convertible into written form.