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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

29: Bank may suspend director or senior manager if approval not obtained

You could also call this:

"The Bank can stop a director or senior manager from working if they weren't properly approved."

Illustration for Deposit Takers Act 2023

If you are a director or senior manager of a licensed deposit taker, the Bank can stop you from doing your job if the deposit taker did not get approval for your appointment as required by section 26. The Bank can make an order that prohibits you from acting as a director or being involved in the management of the deposit taker. This order will stop being in force if the Bank later approves your appointment.

If the Bank makes an order against you, you must follow it. If you do not follow the order, you can be charged with an offence and could face up to one year in prison or a fine of up to $100,000, or both.

The Bank's order is serious, and if you do not comply with it, you could also face further action, as explained in subpart 5 of Part 5, which allows the District Court to make a banning order against you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS512846.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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28: Bank's decision on approval, or

"The bank decides whether to approve your request, and tells you where it says yes, no, or yes with conditions."

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30: Overseas licensed deposit taker must notify Bank if new director or senior manager is appointed, or

"Tell the Bank when you hire a new boss or manager if you're a bank from another country."

Part 2Licensing of deposit takers
Fit and proper requirements

29Bank may suspend director or senior manager if approval not obtained

  1. If a licensed deposit taker fails to comply with section 26 in relation to a director or senior manager (B), the Bank may make an order prohibiting or restricting B, without the leave of the Bank, from either or both of the following:

  2. acting as a director of the deposit taker:
    1. being concerned in, or taking part in the management of, the deposit taker.

      1. The order ceases to be in force if the Bank approves the appointment.

      2. If B knowingly fails to comply with the order, B commits an offence and is liable on conviction to imprisonment for a term not exceeding 1 year or to a fine not exceeding $100,000 (or both).

      3. See also subpart 5 of Part 5, which allows the District Court to make a banning order if B fails to comply with the Bank’s order.