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Deposit Takers Act 2023

Miscellaneous - Regulations

455: Regulations relating to depositor compensation scheme

You could also call this:

"Rules about helping people get their money back if a bank fails"

Illustration for Deposit Takers Act 2023

The Governor-General can make rules about a depositor compensation scheme. You might want to look at Part 6 to understand what this scheme is about. The Governor-General makes these rules on the recommendation of the Minister.

The rules can be about who is not eligible for the scheme, what kinds of trusts or schemes are allowed, and what currencies are used. You can find more information about these things in section 191(2)(b), section 192(1)(a)(ii), and section 192(1)(c).

The Minister must consider the Bank's advice before making a recommendation. The Bank gives advice to the Minister before any rules are made. If you want to know more about how these rules are published, you can check out Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS524619.

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454: General regulations, or

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Part 8Miscellaneous
Regulations

455Regulations relating to depositor compensation scheme

  1. The Governor-General may, by Order in Council, on the recommendation of the Minister, make regulations for all or any of the following purposes:

  2. prescribing classes of persons that are not eligible depositors under Part 6:
    1. prescribing kinds of trusts, schemes, or other arrangements for the purposes of section 191(2)(b) and declaring matters under section 191(3)(b):
      1. prescribing kinds of currencies for the purposes of section 192(1)(a)(ii):
        1. prescribing requirements and kinds of debt securities for the purposes of section 192(1)(c):
          1. specifying kinds of licensed deposit takers for the purposes of section 192(2)(c):
            1. declaring classes of debt securities not to be protected deposits under Part 6:
              1. providing for matters relating to temporary high balance limits, including 1 or more of the following:
                1. prescribing limits or how limits must be determined:
                  1. providing for the circumstances or other matters relating to when a limit applies (for example, providing for how long an amount may be held in a protected deposit before the limit ceases to apply):
                    1. providing for a limit to apply in relation to an eligible depositor only if the eligible depositor or another person does 1 or more things in the manner prescribed by the regulations or in the manner specified by the Bank (for example, supplies information to the Bank):
                    2. prescribing kinds of persons for the purposes of section 205(5)(b):
                      1. prescribing kinds of trusts for the purposes of section 209(1)(b)(ii):
                        1. providing for matters referred to in sections 212 and 215:
                          1. providing for matters referred to in section 213:
                            1. providing for matters referred to in section 214.

                              1. The Minister must, before making a recommendation under subsection (1), have regard to the advice given by the Bank under subsection (3).

                              2. The Bank must, before regulations are made under this section, give the Minister advice about the proposed regulations.

                              3. Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                              Notes