Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

28: Bank's decision on approval

You could also call this:

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

Illustration for Deposit Takers Act 2023

When you apply for approval under section 26, the Bank thinks about it. The Bank can then approve your request with or without conditions, or refuse it. The Bank decides what conditions to include if it gives approval.

The Bank tells you about its decision within 20 working days of getting all the information it needs. You get a notice from the Bank with its decision. This notice is sent after the Bank has all the necessary information.

If the Bank refuses your request or approves it with conditions, the notice explains why it made that decision. The Bank must give you reasons for refusing or adding conditions to its approval. You receive these reasons in the notice from the Bank.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=LMS512890.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

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."

Next

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

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

Part 2Licensing of deposit takers
Fit and proper requirements

28Bank's decision on approval

  1. The Bank may, after considering a request for approval under section 26,—

  2. give its approval unconditionally or subject to any conditions that the Bank thinks fit; or
    1. refuse to give its approval.

      1. The Bank must give notice of its decision to the licensed deposit taker within 20 working days after receiving all of the information that the Bank reasonably requires to assist it in determining whether to give its approval.

      2. If the Bank refuses to give its approval or its approval is subject to conditions, the notice under subsection (2) must contain a statement of its reasons.