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Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Obtaining significant influence

40: Overseas licensed deposit taker must notify Bank if person obtains significant influence

You could also call this:

"Overseas banks must tell the Bank if someone important gains control over them."

Illustration for Deposit Takers Act 2023

If you are an overseas licensed deposit taker and someone gets significant influence over you, you must tell the Bank in writing within 20 working days. You need to tell the Bank the person's name, the names of any other important people, and how much power they have over you, as explained in section 39. You also need to tell the Bank the date when the person got significant influence over you.

If you do not tell the Bank, you can get in trouble and have to pay a fine. You might have to pay an infringement fee of $10,000 or a fine of up to $25,000 decided by a court.

You must follow these rules to avoid getting in trouble with the Bank and 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=LMS663518.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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39: Person who obtains significant influence over licensed deposit taker must obtain Bank’s approval, or

"You need Bank approval to control a New Zealand deposit taker if you have a big say in its decisions."

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41: Licensed deposit taker must obtain Bank’s approval before entering into significant transaction, or

"Get Bank approval before making big business changes"

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Obtaining significant influence

40Overseas licensed deposit taker must notify Bank if person obtains significant influence

  1. If a person (A) gives effect to a transaction that results in A obtaining significant influence over an overseas licensed deposit taker (B), B must give the Bank written notice of that matter within 20 working days after B becomes aware that A has obtained that influence.

  2. The notice must specify the following information (to the extent that B is aware of the information):

  3. A’s name and the names of any specified persons; and
    1. the nature and extent of the power referred to in section 39 that A (or A together with 1 or more specified persons) may exercise or control; and
      1. the date on which A obtained the significant influence.

        1. An overseas licensed deposit taker that contravenes subsection (1) commits an infringement offence and is liable to—

        2. an infringement fee of $10,000; or
          1. a fine imposed by a court not exceeding $25,000.