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Deposit Takers Act 2023

Crisis management and resolution - No creditor or shareholder worse off - Appointment of valuer

395: Who may be appointed as valuer

You could also call this:

"Who can be chosen to decide the value of something as a valuer?"

Illustration for Deposit Takers Act 2023

You can be appointed as a valuer for an affected entity if the Minister is satisfied that you have the right knowledge, skills, and experience. You must also meet the independence requirements, which means you cannot have been involved with the Bank in certain ways. The Minister must also be satisfied that you are not disqualified from being a valuer.

You are independent if you have not been a member of the Bank's board, a member of the monetary policy committee, or an employee of the Bank or its subsidiary in the last two years. There are also other requirements about independence that are set out in regulations.

You are disqualified from being a valuer if you have been a director, auditor, or receiver of the affected entity or its associated person in the last two years. You are also disqualified if you or your firm have provided professional services to the affected entity or had a continuing business relationship with it in the last two years, unless the Minister consents to your appointment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS549266.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"Courts can still review decisions even if this law doesn't limit them"

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396: Application of this subpart to joint valuers, or

"How joint valuers work together to make decisions for an entity"

Part 7Crisis management and resolution
No creditor or shareholder worse off: Appointment of valuer

395Who may be appointed as valuer

  1. A person may be appointed as valuer in relation to an affected entity (A) if—

  2. the Minister is satisfied that the person—
    1. has the knowledge, skills, and experience that are prescribed by the regulations; and
      1. meets the independence requirements; and
      2. the person is not disqualified under subsection (3).

        1. The independence requirements are as follows:

        2. a requirement that the person has not, within the 2 years immediately before A enters into resolution, been any of the following:
          1. a member of the board of the Bank:
            1. a member of the monetary policy committee:
              1. an employee of the Bank or of a subsidiary of the Bank:
              2. the requirements about independence from the Bank that are prescribed by the regulations.

                1. The following persons are disqualified from being appointed or acting as valuer in relation to A:

                2. a person who has, within the 2 years immediately before A enters into resolution, been a director, an auditor, or a receiver of A or of an associated person:
                  1. a person who has, or whose firm has, within the 2 years immediately before A enters into resolution,—
                    1. provided professional services to A; or
                      1. had a continuing business relationship with A, its majority shareholder, or any of its directors, or with any of A’s shareholders that (under its constitution or any other agreement) have a power to appoint or remove a director of A:
                      2. a person of any class that is prescribed by the regulations.

                        1. A person is not disqualified under subsection (3)(b)—

                        2. if the professional services are provided, or the relationship arises, by reason only of the appointment of the person, or of the person’s firm,—
                          1. by, or at the instigation of, A or a creditor or other party that has an actual or potential financial interest in A; and
                            1. to investigate or to advise on the solvency of A or to monitor the affairs of A; or
                            2. if the Minister consents to the appointment of the person.

                              1. The Minister must, before giving their consent under subsection (4)(b), be satisfied that the provision of the professional services, or the continuing business relationship, will not have a materially adverse effect on the person’s ability to perform or exercise their functions, powers, or duties.