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Deposit Takers Act 2023

Depositor compensation scheme - Depositor Compensation Fund

201: Investments

You could also call this:

"The Bank can invest your money if it's not needed right away, as long as it follows the rules."

Illustration for Deposit Takers Act 2023

The Bank can invest money it receives for the fund if it is not needed right away. You should know that the Bank has to follow the rules for investing the fund that are outlined in the statement of funding approach. The Bank must do this when investing the money.

The rules in this section do not change the rules in subpart 5. When the Bank invests money under this section, section 113 of the Reserve Bank of New Zealand Act 2021 does not apply. This means that section 113 does not affect the Bank's investments made under this section.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS506211.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 6Depositor compensation scheme
Depositor Compensation Fund

201Investments

  1. The Bank may invest all or any money received by it in respect of the fund that is not immediately required for expenditure.

  2. The Bank must comply with the requirements for the investment of the fund that are contained in the statement of funding approach.

  3. This section does not limit subpart 5.

  4. Section 113 of the Reserve Bank of New Zealand Act 2021 does not apply to an investment made under this section.