RESERVE
BANK
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T E P Ū T E A M A T U A

Non-bank Deposit Takers (UDC Finance Limited) Exemption Amendment Notice 2016

Under section 70 of the Non-bank Deposit Takers Act 2013, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).

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Notice

1 Title
This notice is the Non-bank Deposit Takers (UDC Finance Limited) Exemption Amendment Notice 2016.

2 Commencement
This notice comes into force on 31 May 2016.

3 Principal notice amended
This notice amends the Non-bank Deposit Takers (UDC Finance Limited) Exemption Notice 2015.

4 Revocation
Clause 3 is amended by omitting “1 June 2016” and substituting “1 September 2016.”

5 Conditions of exemption
Clause 7(c) is amended by omitting “1 June 2016” and substituting “1 September 2016.”

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Dated at Wellington this 30 day of May 2016.

[Signature]

Grant Spencer,
Deputy Governor.

Ref #6547355 v2.0

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2

Statement of reasons

This notice, which comes into force on 2 June 2016, amends the Non-bank Deposit Takers (UDC Finance Limited) Exemption Notice 2015 (the principal notice). The principal notice exempts UDC Finance Limited (UDC) from the requirements of regulations 9(1), 11, and 23(3)(b) of the Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010.

The amendment made by this notice extends, until 1 September 2016, the exemptions granted to UDC in the principal notice.

The Reserve Bank of New Zealand (Bank), after taking into account the principles set out in section 8 of the Act and satisfying itself as to the matters set out in section 70(2) of the Act, considers it appropriate to amend the principal exemption for a further three months because the Bank has received and is in the process of considering an application from UDC to continue the exemptions.

The Bank considers that further time is necessary to properly consider UDC’s application and decide whether it is appropriate in the circumstances to grant a longer term continuation of the exemptions.

In addition, the further time will provide UDC with a reasonable transition period to comply with the exempted requirements if the Bank decides that it is appropriate to decline UDC’s application to continue the exemptions.

The Bank considers that the extension is no longer than is reasonably necessary to enable consideration of UDC’s application and provide a sufficient transition period if required, and so is not broader than necessary to address the matters giving rise to the exemption.

These reasons are supplementary to the reasons provided in the principal notice.

Ref #6547355 v2.0