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Deposit Takers Act 2023

Licensing of deposit takers - Fit and proper requirements

36: Offence to contravene direction

You could also call this:

"Breaking a direction about who can be a boss at a deposit taker is against the law"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker and you reappoint someone as a director or senior manager when you are not supposed to, you commit an offence. You can be fined up to $500,000 if you are convicted. This is because you did not follow a direction under section 35.

If someone has been removed as a director or manager under section 34 and they accept a new appointment when they are not supposed to, they also commit an offence. They did not follow a direction under section 35.

You can be fined up to $50,000 if you are convicted of committing this offence as an individual.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538429.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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35: Bank may direct that person may not be reappointed, or

"The Bank can stop someone from being reappointed as a director or manager"

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37: Further provisions about power to remove, or

"Rules for Removing Leaders of Deposit Takers"

Part 2Licensing of deposit takers
Fit and proper requirements

36Offence to contravene direction

  1. A licensed deposit taker that reappoints a person as a director or senior manager in contravention of a direction under section 35 commits an offence and is liable on conviction to a fine not exceeding $500,000.

  2. A person who has been removed as a director or manager under section 34 commits an offence if they accept reappointment to a position in contravention of a direction under section 35.

  3. A person who commits an offence against subsection (2) is liable on conviction to a fine not exceeding $50,000.