Non-bank deposit takers' transition to the DTA

Published:

14 September 2026

About the transition to the DTA

We are working with the Financial Markets Authority (FMA) on a framework to guide non-bank deposit takers (NBDTs) and their deposit holders through the transition to the DTA. As this work progresses, we will use this page to provide updates on transitioning NBDTs and their deposit holders to the full protections of the DTA.

The DTA provides increased protection

The DTA provides for closer regulation of all deposit takers and additional protections for depositors through the Depositor Compensation Scheme. Our greater powers under the DTA mean we can step in if a deposit taker’s financial situation or business practices are putting depositors’ money, and New Zealand’s financial system, at risk.

Background to the NBDT transition framework

New Zealand has a ‘twin peaks’ model of financial sector regulation. Under this model, we are responsible for prudential regulation and supervision, while the FMA is responsible for financial market conduct. We work together on areas of overlapping interest, such as the transition to the DTA.

Currently, regulated banks are supervised by the Reserve Bank, while NBDTs are supervised by trustees licensed by the FMA. The trustees supervise NBDTs’ compliance with legal agreements called trust deeds.

When the DTA comes into effect, all deposit takers, including those currently known as NBDTs, will be supervised by the Reserve Bank. DTA standards set the prudential requirements for deposit takers and become the basis for our supervision, rather than trust deeds.

More information

• The current NBDT regime and the role of trustees
• DTA standards
• Depositor Compensation Scheme