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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Subject matter of standards

81: Fit and proper persons

You could also call this:

"Who can be a boss of a deposit taker: being honest and good at your job"

Illustration for Deposit Takers Act 2023

When you are a director or senior manager of a deposit taker, you must be a fit and proper person. This means you have to be honest and capable of doing your job. A standard may say what matters are relevant to deciding if you are a fit and proper person.

You need to give the Bank certain information when you are appointed to a position. This information helps the Bank decide if you are a fit and proper person. A fit and proper policy is a set of rules that ensures only fit and proper persons are appointed to positions.

A fit and proper policy may require you to have certain qualifications or experience for your position. It may also encourage you to disclose information that is relevant to your fit and proper assessment. The policy must say how your information will be collected and used, and this may involve giving or getting consents, as required by the Bank or the deposit taker, for example, under subpart 4 of Part 2.

The Bank may look at your fit and proper status again to ensure you are still suitable for your position. If you are a senior manager appointed on an interim basis, there may be special terms and conditions that apply to you, as outlined in section 26(3)(a). These terms and conditions help ensure you are a fit and proper person for the position.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS579790.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 3Regulation of deposit takers
Standards: Subject matter of standards

81Fit and proper persons

  1. A standard may regulate, deal with, or otherwise relate to matters to ensure that only a fit and proper person may be appointed to, and continue to hold, a position as a director or senior manager, including—

  2. specifying the matters that are relevant to the consideration of whether a person is a fit and proper person to be appointed to, and continue to hold, a position as a director or senior manager; and
    1. specifying the information that must be provided to the Bank when seeking the Bank’s approval of the appointment of a director or senior manager; and
      1. specifying the contents of fit and proper certificates; and
        1. imposing requirements for establishing, implementing, maintaining, and complying with a policy for the purpose of ensuring that only fit and proper persons are appointed to, and continue to hold, positions as directors or senior managers (a fit and proper policy); and
          1. imposing requirements for re-assessing whether a director or senior manager is a fit and proper person to continue to hold their position; and
            1. specifying, for the purposes of section 26(3)(a), terms and conditions in connection with a senior manager who is appointed on an interim basis (for example, a term or condition relating to the permitted period of appointment and requirements that must be complied with before the person is appointed).

              1. A standard for a fit and proper policy may (without limitation) require the policy to do 1 or more of the following:

              2. specify the qualifications, requirements, and other criteria for a particular position, including matters relating to a person’s character, competence, and experience relative to the duties of the position:
                1. contain provisions to encourage any person to disclose information to the deposit taker or the Bank that may be relevant to a fit and proper assessment:
                  1. contain provisions for giving or obtaining any consents required for the collection and use of any information by—
                    1. the deposit taker to comply with the policy or subpart 4 of Part 2; and
                      1. the Bank for the performance or exercise of its functions, powers, or duties in connection with the policy.