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Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Entitlement rules

208: Providers of relevant arrangement not entitled to compensation

You could also call this:

"If something goes wrong, you can't get compensation for holding someone's deposit, but they might."

Illustration for Deposit Takers Act 2023

If you hold a protected deposit for someone else, they may get compensation under sections 202 and 203 if something goes wrong. You are not entitled to this compensation, but the person you are holding the deposit for might be. This means the other person can get help, but you cannot get compensation as the person holding the deposit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS543769.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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207: Partnerships, or

"Partnerships are treated as one person, not many, when it comes to getting compensation"

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209: Entitlement rule for deposits held on trust, or

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Part 6Depositor compensation scheme
Entitlement to compensation: Entitlement rules

208Providers of relevant arrangement not entitled to compensation

  1. If a person (A) holds a protected deposit under a relevant arrangement for, or on behalf of, 1 or more other persons, the other person or persons (but not A) may be entitled to compensation under sections 202 and 203 in respect of the deposit.