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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Subject matter of standards

86: Depositor compensation

You could also call this:

"Help for people who have money in the bank if it gets into trouble"

Illustration for Deposit Takers Act 2023

The law says a standard can be about depositor compensation. You need to know what this means for the Bank's work under Part 6. This includes giving the Bank information it needs, like details about protected deposits and depositors.

A standard can also be about gathering this information. It can be about identifying debt securities from overseas or New Zealand offices of a licensed deposit taker, as explained in section 192(2)(a). You can find more about this in the link to section 192(2)(a).

The standard can help the Bank give compensation to eligible depositors quickly after a specified event notice is issued. This is so the Bank can identify eligible depositors and protected deposits quickly and accurately, as outlined in Part 6. This helps the Bank do its job under the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS579794.

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

86Depositor compensation

  1. A standard may regulate, deal with, or otherwise relate to any 1 or more of the following matters in connection with the depositor compensation scheme:

  2. making available to the Bank the information that the Bank considers is necessary or desirable for the performance or exercise of its functions, powers, or duties under Part 6 (including information about the size and composition of protected deposits and information about depositors to determine actual or potential entitlements to compensation under that Part):
    1. gathering the information referred to in paragraph (a):
      1. providing for the identification of a debt security as being issued out of, or administered by, an overseas office or branch of a licensed deposit taker or a New Zealand office or branch of that deposit taker (see section 192(2)(a)):
        1. facilitating the Bank’s ability to provide entitlements to compensation to, or on account of, eligible depositors under Part 6 as soon as practicable after a specified event notice is issued (for example, to enable the Bank to quickly and accurately identify eligible depositors and protected deposits in connection with that notice).