Regulatory Alerts2022-05-17
RIS - Regulations for Non-bank deposit takers - debt securities and suitability concerns
The Reserve Bank of New Zealand proposes regulations under the Non-bank Deposit Takers Bill to address the inconsistent prudential treatment of building societies and to define suitability concerns for directors and senior officers. The Bank recommends declaring building society shares that function as debt securities to be debt securities, thereby ensuring these entities remain subject to prudential regulation without capturing offshore shell companies. Additionally, the Bank advocates for wide suitability criteria to capture all potential risks regarding the character of appointees, prioritizing financial system stability over reduced administrative costs.
Share