Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Regulation of deposit takers - Directors’ and New Zealand chief executive officers’ due diligence duty

97: Bank must prepare guidance about due diligence duties

You could also call this:

"Banks must create easy-to-follow rules to help people understand their responsibilities"

Illustration for Deposit Takers Act 2023

The Bank has to make some guidance about what people must do to follow the rules in this part of the law. You will be able to find this guidance on the Bank's website. The Bank must keep this guidance up to date.

The guidance will tell you about the jobs and responsibilities of directors and senior managers. Before the Bank publishes the guidance, it must talk to the people who will be affected by the rules. This includes people who give advice or training on what directors must do.

The Bank will also put a list of people who made submissions on its website, along with a copy of what they said. However, if someone asks the Bank not to publish their submission, or if the Bank thinks there is a good reason not to, it does not have to publish it.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS818209.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

96: Use of information and advice, or

"Trusting information to help you make good decisions as a deposit taker boss"

Next

98: Prudential supervision, or

"The Bank watches over companies that take deposits to ensure they work properly."

Part 3Regulation of deposit takers
Directors’ and New Zealand chief executive officers’ due diligence duty

97Bank must prepare guidance about due diligence duties

  1. The Bank must—

  2. prepare and keep up to date guidance about the duties under this subpart; and
    1. publish a copy of the guidance on the Bank’s Internet site.

      1. The guidance must include guidance about the respective roles and responsibilities of directors and senior managers.

      2. Before publishing the guidance, the Bank must consult—

      3. the persons, or representatives of the persons, that the Bank considers will be substantially affected by the duties under this subpart; and
        1. 1 or more entities that—
          1. issue guidance, or provide training, in relation to directors’ duties or other matters relating to governance; or
            1. otherwise act as a professional body for directors.

            2. As soon as practicable after publishing the guidance, the Bank must also publish on its Internet site—

            3. a list of the names of the persons that made a written submission to the Bank as part of the consultation process under subsection (3); and
              1. a copy of each of those submissions.

                1. However, the Bank is not required to publish a copy of the whole or any part of a submission under subsection (4) if—

                2. the person who made the submission requests (in the manner that is specified by the Bank) that the Bank not publish the submission or that part; or
                  1. the Bank is satisfied that there is a good reason to not publish the submission or that part (for example, to protect the privacy of an individual, to protect confidential information, or to avoid infringing copyright).