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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Subsidiaries

348: Rules relating to subsidiaries do not apply

You could also call this:

"Some rules about subsidiaries don't apply to the Reserve Bank's work."

Illustration for Deposit Takers Act 2023

When you look at the rules about subsidiaries, you need to remember that some rules do not apply. Nothing in subpart 8 of the Reserve Bank of New Zealand Act 2021 applies to what the Bank does under certain parts of the law. These parts include subparts 4, 5, 7, and 8.

When a company is formed and registered according to the law, it is not considered a subsidiary of the Bank under the Reserve Bank of New Zealand Act 2021. You should understand that this rule is specific to the Bank's functions and duties. This means that the company is not treated as a subsidiary in this case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS539596.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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"Who pays the costs when a bank or company is being sorted out?"

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349: When this subpart applies, or

"When the government helps a bank in trouble using public money."

Part 7Crisis management and resolution
Conduct of resolution: Subsidiaries

348Rules relating to subsidiaries do not apply

  1. Nothing in subpart 8 of Part 2 of the Reserve Bank of New Zealand Act 2021 (subsidiaries) applies to anything the Bank does in the performance or exercise of its functions, powers, or duties under this subpart and subparts 4, 5, 7, and 8.

  2. No body corporate formed and registered in accordance with this subpart is a subsidiary of the Bank under the Reserve Bank of New Zealand Act 2021.