Regulatory Alerts2022-05-17
Cabinet Paper: Second Non-Bank Deposit Takers Bill (May 2010)
The New Zealand Office of the Minister of Finance proposes a standalone Non-Bank Deposit Takers Bill to finalize the prudential regulatory framework overseen by the Reserve Bank. The legislation mandates licensing for all qualifying entities, enforces suitability criteria for directors and senior officers, and requires Reserve Bank approval for any transaction granting 20 percent or more voting control or 25 percent board representation. It also expands the Reserve Bank’s distress and failure management tools through enhanced information-gathering and direction powers, while incorporating existing prudential provisions from the Reserve Bank of New Zealand Act 1989 and establishing a tiered penalty structure for non-compliance.
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