Deposit Takers Act 2023

Miscellaneous - Regulations

465: Regulations providing for taking into account funds that are withdrawn or available to eligible depositors during resolution

You could also call this:

"Rules to help depositors get their money back fairly when a bank is in trouble"

Illustration for Deposit Takers Act 2023

When the Minister wants to make new regulations under section 455(1)(l), you need to know they have to check a few things first. They must be sure the regulations are necessary to fairly consider the matter mentioned in section 214(1)(b). The Minister also has to think about whether the regulations will treat eligible depositors fairly, compared to if the entity was being liquidated under New Zealand law.

The Minister has to consider if eligible depositors will get the same or better treatment with the new regulations. They must think about how the regulations will affect eligible depositors and make sure they are treated fairly.

The Minister must also think about the purpose of Part 6, which is explained in section 190, when making these regulations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS726703.


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"Rules for when money transfers get stuck and haven't been processed yet"


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Part 8Miscellaneous
Regulations

465Regulations providing for taking into account funds that are withdrawn or available to eligible depositors during resolution

  1. The Minister must, before recommending regulations under section 455(1)(l),—

  2. be satisfied that the regulations are necessary or desirable to fairly take into account the matter referred to in section 214(1)(b); and
    1. be satisfied that eligible depositors are likely to receive in connection with the regulations no less favourable treatment than would have been the case had a liquidation of the entity under New Zealand law commenced immediately before the entity entered into resolution; and
      1. have regard to the purpose of Part 6 set out in section 190.