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Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Amalgamation

43: Overseas licensed deposit taker must notify Bank if it amalgamates with another person

You could also call this:

"Tell the Bank if your overseas deposit taking company merges with another company"

Illustration for Deposit Takers Act 2023

If you are an overseas licensed deposit taker and you amalgamate with another person, you must tell the Bank in writing within 20 working days. You need to include the names of the entities that are amalgamating and the new entity they are forming. You also need to tell the Bank the date the amalgamation happened.

If you do not tell the Bank about the amalgamation, you can get in trouble. You might have to pay an infringement fee of $10,000. Alternatively, a court could fine you up to $25,000.

You must follow this rule to avoid any problems with the Bank. The Bank needs to know about the amalgamation so they can keep track of what is happening. This helps the Bank make sure everything is working correctly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS664384.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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42: Licensed deposit taker must obtain Bank’s approval before amalgamation, or

"Get Bank approval before merging with another company"

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44: Offence to fail to get approval, or

"Breaking rules without Bank approval is a crime"

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Amalgamation

43Overseas licensed deposit taker must notify Bank if it amalgamates with another person

  1. If an overseas licensed deposit taker (A) amalgamates with another person (under a law that results in 2 or more entities amalgamating and continuing as 1 entity), A must give the Bank written notice of the amalgamation within 20 working days after it takes effect.

  2. The notice must specify—

  3. the names of each amalgamating entity and the amalgamated entity; and
    1. the date of the amalgamation.

      1. An overseas licensed deposit taker that contravenes this section 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.