Deposit Takers Act 2023

Crisis management and resolution - Resolution of licensed deposit takers and associated persons

274: Resolution of licensed deposit takers and associated persons

You could also call this:

"What happens when a company looking after people's money gets into trouble"

Illustration for Deposit Takers Act 2023

The Governor-General can make a special order if the Minister advises them to, based on a recommendation from the Bank. You might wonder what this order is about - it's to say that a licensed deposit taker, which is a company that looks after people's money, is in a special situation called resolution. The Governor-General can also make an order to say that one or more people or companies connected to the licensed deposit taker are in resolution. If you want to learn more about similar laws, you can look at the s 117(1) from 1989. This is all part of how the government manages problems with companies that look after people's money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS529223.


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273: Offence to contravene prohibition, or

"Breaking the rules can lead to a big fine of up to $100,000 or more."


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275: Resolution of subsidiaries, or

"What happens to subsidiaries when a deposit taker has financial problems"

Part 7Crisis management and resolution
Resolution of licensed deposit takers and associated persons

274Resolution of licensed deposit takers and associated persons

  1. The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank,—

  2. declare that a licensed deposit taker (A) is in resolution; and
    1. declare that 1 or more associated persons of a licensed deposit taker are in resolution.
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