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Deposit Takers Act 2023

Depositor compensation scheme - Use of fund to support resolution - Independent review

234: Review of calculation

You could also call this:

"Checking the Bank's maths is correct"

Illustration for Deposit Takers Act 2023

When the Bank pays out money from a fund, you need to know that they must appoint a reviewer. The reviewer's job is to check if the Bank's calculation of the maximum amount is correct according to the regulations made for the purpose of section 231(1)(a) or section 232(4) if the Bank acted under section 231(1)(b). The Bank must choose a reviewer who has the right knowledge and skills, and is independent of the Bank.

The reviewer checks the Bank's calculation and writes a report on their findings. They talk to the Bank about the report and then give the Bank a final report. When checking the calculation, the reviewer can only consider information the Bank knew at the time of the calculation, as stated in section 231.

The Bank must put the final report on their website. The Bank can remove some information from the report if they think there is a good reason to keep it secret under the Official Information Act 1982.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS560446.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 6Depositor compensation scheme
Use of fund to support resolution: Independent review

234Review of calculation

  1. The Bank must appoint 1 or more persons as reviewer as soon as is reasonably practicable after—

  2. a resolution ends, if the Bank has paid money out of the fund under this subpart during the course of the resolution; or
    1. the Bank pays money out of the fund under this subpart to pay compensation under subpart 9 of Part 7.

      1. Before appointing a reviewer, the Bank must be satisfied that the person—

      2. has the appropriate knowledge, skills, and experience to act as the reviewer under this section; and
        1. is independent of the Bank.

          1. The reviewer must—

          2. assess whether the Bank’s calculation of the maximum amount complies with—
            1. the regulations made for the purpose of section 231(1)(a); or
              1. section 232(4) if the Bank acted under section 231(1)(b); and
              2. prepare a draft report on their findings; and
                1. consult the Bank on the draft report; and
                  1. provide a final report to the Bank after taking into account the Bank’s comments on the draft.

                    1. The reviewer may, when acting under subsection (3)(a), only take into account information known to the Bank at the time that it makes the calculation under section 231.

                    2. The Bank must publish the final report on its Internet site.

                    3. The Bank may redact any information from the final report that is published if the Bank considers there would be a good reason for withholding the information under the Official Information Act 1982 if a request for that information were made under that Act.