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Deposit Takers Act 2023

Crisis management and resolution - Bank may give directions, approve sales, and replace directors - Disclosure of direction or notice

273: Offence to contravene prohibition

You could also call this:

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

Illustration for Deposit Takers Act 2023

If you break the rules in section 272, you commit an offence. You can get a fine if you are found guilty. The fine is up to $100,000 if you are an individual.

If you are not an individual, the fine can be up to $2,500,000. This is what happens if you contravene the prohibition. You will be liable on conviction for the fine.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538952.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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272: Prohibition on disclosing or publishing direction or notice, or

"Keep quiet about secret bank directions or notices unless the Bank says you can share them."

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274: Resolution of licensed deposit takers and associated persons, or

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

Part 7Crisis management and resolution
Bank may give directions, approve sales, and replace directors: Disclosure of direction or notice

273Offence to contravene prohibition

  1. A person that contravenes section 272 commits an offence and is liable on conviction,—

  2. in the case of an individual, to a fine not exceeding $100,000:
    1. in any other case, to a fine not exceeding $2,500,000.

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