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Deposit Takers Act 2023

Depositor compensation scheme - Preliminary provisions

193: Licensed deposit taker must publish list of protected deposits

You could also call this:

"Banks must list which of your deposits are protected so you know your money is safe."

Illustration for Deposit Takers Act 2023

If you have money in a bank or other deposit taker, you want to know if it is safe. A licensed deposit taker must have a website that clearly shows which of their debt securities are protected deposits. They can do this by listing the protected deposits on their own website or by having a clear link to another website that has this information. This helps you understand what is protected.

If a licensed deposit taker does not follow this rule, they can get in trouble and have to pay a fine. The fine can be up to $20,000 as an infringement fee or up to $50,000 if a court decides. This is to make sure licensed deposit takers follow the rules and keep your money safe.

When we talk about debt securities being in the same class, it means they have the same rules and conditions, except for things like when they mature or what interest rate they have. This helps you compare different debt securities and understand what you are getting. You can use this information to make informed decisions about your money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS712160.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rules
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Part 6Depositor compensation scheme
Preliminary provisions

193Licensed deposit taker must publish list of protected deposits

  1. A licensed deposit taker must ensure that an Internet site that is maintained by, or on behalf of, the deposit taker—

  2. identifies clearly and prominently all classes of debt securities issued by the deposit taker that are protected deposits; or
    1. contains a prominent link to another Internet site that clearly and prominently contains that information.

      1. A licensed deposit taker that contravenes this section commits an infringement offence and is liable to—

      2. an infringement fee of $20,000; or
        1. a fine imposed by a court not exceeding $50,000.

          1. In this section, debt securities are of the same class if those debt securities have attached to them identical rights, privileges, limitations, and conditions, except that they may have a different redemption date or interest rate or both.