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Deposit Takers Act 2023

Crisis management and resolution - Resolution manager - Appointment of resolution manager

360: How this Part applies if Bank holds office as resolution manager

You could also call this:

"What happens when the Bank is in charge of fixing a problem with a deposit taker"

Illustration for Deposit Takers Act 2023

If the Bank is in charge of sorting out a problem with a deposit taker, you need to know how the rules apply. The Bank does not have to report to, get consent from, or talk to itself, because it is already in charge. The rules also do not require the Bank to supervise itself, and the rest of the rules apply with some changes.

When the Bank is in charge, it has to follow the rules, but it does not have to follow the rules that would normally apply to someone else in its position. If someone else is also helping the Bank sort out the problem, the Bank still has to follow some of the rules in relation to that other person.

The rules are a bit different when the Bank is in charge, but they still apply in a way that makes sense for the situation, with the Bank having some extra responsibilities because it is in charge of sorting out the problem.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS722557.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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359: Bank holds office as resolution manager if no other person holds office, or

"The Bank helps fix a deposit taker that's in trouble if no one else is in charge."

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361: How 2 or more resolution managers may act, or

"How two or more resolution managers work together to make decisions"

Part 7Crisis management and resolution
Resolution manager: Appointment of resolution manager

360How this Part applies if Bank holds office as resolution manager

  1. If the Bank holds office as resolution manager,—

  2. the duty for the resolution manager to report to, obtain the consent of, or consult the Bank does not apply; and
    1. the duty on the Bank (as resolution authority) to supervise the resolution manager does not apply; and
      1. this Part applies with all other necessary modifications.

        1. If another person also holds office as resolution manager, the duties referred to in subsection (1)(a) and (b) continue to apply in relation to that person.