Deposit Takers Act 2023

Regulation of deposit takers - Standards - Subject matter of standards

78: Governance, incorporation structure, and ownership

You could also call this:

"Rules for running and owning a company that takes people's money, like a bank"

Illustration for Deposit Takers Act 2023

A standard can regulate how a deposit taker is run. This includes how the organisation is structured and who is in charge. You might wonder what a deposit taker is - it's a company that takes deposits from people, like a bank. The standard can also cover things like how much the people in charge get paid and what benefits they receive. It can even say how a deposit taker should be set up as a company, who can own it, and how it should be owned.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS579787.


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77: Bank must prepare and publish framework for taking proportionality principle into account when developing standards, or

"Banks must create a plan to make fair rules for different sized businesses"


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79: Capital, liquidity, security interests, and credit ratings, or

"Rules for deposit takers: money, cash, guarantees, and debt management"

Part 3Regulation of deposit takers
Standards: Subject matter of standards

78Governance, incorporation structure, and ownership

  1. A standard may regulate, deal with, or otherwise relate to 1 or more of the following matters:

  2. the governance of a deposit taker, including—
    1. its organisational structure and the structure of its licensed deposit taker group; and
      1. the composition, size, and structure of the governing body; and
        1. the responsibilities of the governing body, of committees of that body, and of its management:
        2. the remuneration of, and incentives available to, directors, senior managers, and employees and for any compensation or other benefits payable to directors, senior managers, and employees who cease to hold office, including matters relating to—
          1. governance of remuneration and incentive practices; and
            1. alignment of those practices with prudent risk taking; and
              1. supervisory oversight and engagement by stakeholders:
              2. the incorporation structure of a deposit taker, including matters relating to—
                1. a deposit taker’s constitution (including prohibiting or restricting provisions that may be included in a constitution or requiring a constitution to include specified provisions); and
                  1. whether a deposit taker must be incorporated under New Zealand legislation:
                  2. the ownership structure of a deposit taker and its ownership.