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Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

70: Bank may grant exemptions from credit rating requirements

You could also call this:

"The Bank can choose to exempt some people from credit rating rules and must explain why."

Illustration for Deposit Takers Act 2023

The Bank can let some people or groups not follow the credit rating rules if it wants to. You can find these rules in section 59. The Bank must say why it is letting them not follow the rules.

When the Bank lets someone not follow the rules, it must tell everyone why it made this decision. It does this by publishing its reasons with the exemption. This means you can see why the Bank made this choice.

The Bank's decision to let someone not follow the rules is a type of law called secondary legislation. You can learn more about what this means by looking at Part 3 of the Legislation Act 2019. This explains how the Bank must publish its decisions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS522097.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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69: Licensed deposit taker must give public notice of downgrade, or

"Bank or lender must tell public if their credit rating gets worse"

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71: Restriction on Bank’s exemption power, or

"Banks can't always choose to ignore rules, they must follow special conditions when making exceptions."

Part 3Regulation of deposit takers
Credit rating

70Bank may grant exemptions from credit rating requirements

  1. The Bank may, on the terms and conditions (if any) that it thinks fit, exempt any person or class of persons from compliance with section 59 (which relates to credit ratings).

  2. The Bank’s reasons for granting an exemption (including why it is appropriate) must be published together with the exemption.

  3. An exemption granted under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Notes