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Deposit Takers Act 2023

Crisis management and resolution - Minister may give directions

351: Procedural requirements

You could also call this:

"Rules for when the Minister can give directions to manage risks"

Illustration for Deposit Takers Act 2023

When the Minister gives a direction, you need to know they can only do this if they think it is necessary to manage a risk. The Minister must believe giving the direction is the best way to manage the risk and it must not go against the purposes outlined in section 259(1)(a), (b), and (c). The direction must also be limited to what is necessary to address the issue.

The Minister's direction is related to avoiding or minimising a risk mentioned in section 349(1)(c). You should be aware that the Minister has to consider if the direction is the most appropriate way to manage the risk.

This section does not change the requirements outlined in section 174 of the Reserve Bank of New Zealand Act 2021, which has its own rules for giving directions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS557153.

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Part 7Crisis management and resolution
Minister may give directions

351Procedural requirements

  1. The Minister may give a direction under this subpart only if the Minister is satisfied that—

  2. giving the direction is necessary or desirable for the purpose of avoiding or minimising, or otherwise managing, the risk referred to in section 349(1)(c); and
    1. giving the direction is the most appropriate way of avoiding or minimising, or otherwise managing, the risk; and
      1. the direction is not inconsistent with any of the purposes in section 259(1)(a), (b), and (c); and
        1. the extent of the direction is not broader than is reasonably necessary to address the matters that gave rise to the direction.

          1. This section does not limit section 174 of the Reserve Bank of New Zealand Act 2021, which imposes additional procedural requirements for the direction.