New Zealand Legislation: Acts
Acts are laws made by Parliament
Reprint
as at 17 October 2009
| Public Act | 1989 No 157 |
| Date of assent | 20 December 1989 |
| Commencement | see section 1(2) |
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
This Act is administered by the Reserve Bank of New Zealand.
Limit on use of restricted words in name or title
Limit on use of restricted words in advertisement
Powers of Bank in relation to use of restricted words
66H Limits on further disclosure of information or documents published or disclosed under section 66G
Penalty for offences against this Part
79 Annual fee [Repealed]
Financial disclosure by registered banks
81AB Disclosure statement not required to include information or data about customers or clients of registered banks
Advertising by registered banks
[Repealed]
84 Interpretation [Repealed]
85 Content of advertisements by registered banks [Repealed]
86 Regulations [Repealed]
Provisions applying to disclosure statements
Access to information by home country supervisor
Powers to obtain information and documents
Reserve Bank may give directions
111 Bank may require registered bank to consult [Repealed]
112 Bank may give advice and assistance [Repealed]
Statutory management of registered banks
123 Statutory manager may incorporate company under Companies Act 1993 to acquire business of branch of foreign institution
Penalties for offences against this Part
156AC Penalty for offences relating to registration of banks, disclosure statements, prudential supervision of registered banks, etc
Supply of information relating to payment systems
Disclosure of information relating to payment systems
Penalties for offences against this Part
Procedure for making designation
Further provisions relating to designation
157N Risk management programme must be provided to trustee and must be amended if required by trustee
157P Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain
157Q Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain
Restrictions on related party exposures
157V Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties
157W Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties
157X Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed
Other matters relating to trust deeds
Obligations of trustees to Bank
Investigation and enforcement powers of Bank
Confidentiality of information
158 Meaning of notional surplus income [Repealed]
170 Application of Banking Act 1982 to Bank [Repealed]
180 Amendment to Income Tax Act 1976 [Repealed]
189 Procedure for applying this Act to persons subject to statutory management under Reserve Bank of New Zealand Act 1964
Title [Repealed]
Title: repealed, on 10 September 2008, by section 4 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) This Act may be cited as the Reserve Bank of New Zealand Act 1989.
(2) Except as provided in section 181(5) and (9), this Act shall come into force on 1 February 1990.
Section 1(2): amended, on 24 March 1995, by section 12 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
(1) The purpose of this Act is to provide for the Reserve Bank of New Zealand, as the central bank, to be responsible for—
(a) formulating and implementing monetary policy designed to promote stability in the general level of prices, while recognising the Crown’s right to determine economic policy; and
(b) promoting the maintenance of a sound and efficient financial system; and
(c) carrying out other functions, and exercising powers, specified in this Act.
(2) This section does not limit the functions or powers given to the Bank by any other enactment.
Section 1A: inserted, on 10 September 2008, by section 5 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) In this Act, unless the context otherwise requires,—
bank note or note means any negotiable instrument used or circulated, or intended for use or circulation, as currency
banking group has the meaning given to it in the Orders in Council made under section 81
clearing house means a person that provides clearing or settlement services for a payment system
Deputy Chief Executive means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors of the Bank, the Deputy Governor designated by the Board as the Deputy Chief Executive
Deputy Governor means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors, each of those persons
designated payment system has the meaning set out in section 156L
director, except in relation to the Bank, means—
(a) a person occupying the position of director by whatever name called:
(b) in the case of an entity that does not have directors as such, any trustee, manager, or other person who acts in relation to that entity in the same or a similar fashion as a director would act were that entity a company incorporated in New Zealand under the Companies Act 1993
disclosure statement means the document referred to in section 81(2)(a)
document means a document in any form, whether signed or initialled or otherwise authenticated by its maker or not; and includes—
(a) any writing on any material:
(b) any information recorded or stored by means of any tape-recorder, computer, or other device; and any material subsequently derived from information so recorded or stored:
(c) any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:
(d) any book, map, plan, graph, or drawing:
(e) any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced
financial institution means any person including a body of persons whether incorporated or not, who carries on the business of borrowing and lending money, or providing financial services, or both, and without limiting the generality of the foregoing includes—
(a) a life insurance company, being a company as defined in section 2 of the Life Insurance Act 1908; and includes any branch, division, or office of that company; and
(b) a building society as defined in section 2 of the Building Societies Act 1965; and
(c) a registered bank; and
(d) a specified person or class of persons (including a body or bodies of persons, whether incorporated or not) who is or are declared by the Governor-General, by Order in Council, to be a financial institution or institutions for the purposes of this Act
financial year has the meaning given to it by section 157
foreign exchange means—
(a) the bank notes or other currency, postal notes, or money orders of any country other than New Zealand:
(b) promissory notes and bills of exchange payable otherwise than in New Zealand currency:
(c) a right to receive payment in the currency of a country other than New Zealand:
(d) an obligation to make payment in the currency of a country other than New Zealand:
(e) a security in respect of which any amount payable is payable in a country other than New Zealand or in a foreign currency
Governor means the Governor of the Bank appointed under this Act
holding company means a holding company within the meaning of sections 158 and 158A of the Companies Act 1955 or sections 5 and 6 of the Companies Act 1993, as the case may be
home country supervisor means any central bank, authority, or body in any country other than New Zealand that exercises functions in relation to a parent bank or an overseas incorporated registered bank that correspond with, or are similar to, those conferred on the Bank under Part 5
home jurisdiction means,—
(a) in the case of an overseas person that is a body corporate, the country in which that body is incorporated:
(b) in the case of an overseas person that is an unincorporated body, the country in which that body has its head office or principal place of business
Minister means the Treasurer, or other Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act or particular provisions of this Act
net income, in relation to a financial year, means the total revenue of the Bank reported in its statement of financial performance for that year calculated after deducting all expenses incurred by the Bank in that year
New Zealand chief executive officer, in relation to an overseas incorporated registered bank, means—
(a) the most senior officer of that bank who is ordinarily resident in New Zealand; or
(b) another person who may be nominated by that bank and agreed to in writing by the Bank; or
(c) if section 82(3) applies, an employee of that bank who has been specified by the Bank under that section
non-voting security, in relation to any body, means a specified security that does not confer a voting right
operating expenses, in relation to a financial year,—
(a) includes all expenses incurred by the Bank and reported in its statement of financial performance for that year; but
(b) does not include—
(i) interest, foreign exchange losses, and losses (or provision for losses) on financial instruments or revaluation of financial instruments; or
(ii) any payments made to the Crown under section 21; or
(iii) any expenses agreed by the Minister and the Bank not to be operating expenses
operator, in relation to a payment system, means—
(a) a clearing house; or
(b) a settlement agent; or
(c) any other person that provides clearing, settlement, or processing services to participants in that payment system
overseas bank means any person that is formed, licensed, or registered as a bank in any country other than New Zealand
overseas person means—
(a) a body corporate incorporated outside New Zealand; or
(b) an unincorporated body that has its head office or principal place of business outside New Zealand
parent bank means an overseas bank that is a holding company of a registered bank
participant, in relation to a payment system,—
(a) means a person that participates in the payment system in accordance with the rules of that payment system; and
(b) in the case of a designated payment system, includes an operator of the designated payment system if the designation under section 156M so provides
payment system—
(a) means a system or arrangement for—
(i) the clearing or settlement of payment obligations; or
(ii) the processing of payment instructions; and
(b) includes any instruments, rules, and procedures that relate to the matters referred to in paragraph (a)
qualifying interest, in relation to a specified security, means—
(a) the legal or beneficial ownership of the specified security; or
(b) the power to exercise, or control the exercise of, any voting right attached to the specified security; or
(c) the power to acquire or dispose of the specified security; or
(d) the power to control the acquisition or disposition of the specified security by another person; or
(e) the powers referred to in paragraphs (b) to (d) under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the specified security
Registered bank means a person whose name is entered in the register maintained under section 69 or who continues to be a registered bank by virtue of the provisions of section 76
Reserve Bank or the Bank means the Reserve Bank of New Zealand constituted under this Act
restricted word—
(a) means the words “bank”, “banker”, and “banking”; and
(b) includes—
(i) any of those words as part of any other word:
(ii) a translation of those words into another language (whether or not the translation of those words is part of any other word)
Security has the same meaning as in section 2 of the Securities Act 1978
significant influence, in relation to a registered bank, means—
(a) the ability to directly or indirectly appoint 25% or more of the board of directors (or other persons exercising powers of management, however described) of the registered bank; or
(b) a direct or indirect qualifying interest in 10% or more of the voting securities issued or allotted by the registered bank
specified security has the meaning given to security in section 6(1) of the Overseas Investment Act 2005
subsidiary means a subsidiary within the meaning of section 158(1)(a)(ii) and (b) of the Companies Act 1955 or section 5(1)(a)(iii) and (b) of the Companies Act 1993, as the case may be
trade mark has the meaning given to it by section 5(1) of the Trade Marks Act 2002
voting right, in relation to any body,—
(a) means a currently exercisable right to cast a vote at meetings of shareholders or members of that body; but
(b) does not include a right to vote that is exercisable only in 1 or more of the following circumstances:
(i) during a period in which a payment or distribution (or part of a payment or distribution) in respect of the security that confers the voting right is in arrears or some other default exists:
(ii) on a proposal that affects rights attached to the security that confers the voting right:
(iii) on a proposal to put the body into liquidation or voluntary administration:
(iv) on a proposal for the disposal of the whole, or a material part, of the property, business, or undertaking of the body:
(v) during the liquidation, receivership, voluntary administration, bankruptcy, or statutory management of the body; and
(c) does not include a right to vote that is exercisable only for a special, immaterial, or remote matter that is inconsequential to the control of the body
voting security, in relation to any body, means a specified security that confers a voting right.
(2) For the purposes of section 36, Parts 4 and 5, and sections 179 and 179A, a person is an associated person of a financial institution or a registered bank, as the case may be, if—
(a) that person directly or indirectly controls the management of the financial institution or registered bank; or
(b) that person has a direct or indirect qualifying interest in 20% or more of the voting or non-voting securities issued by the financial institution or registered bank; or
(c) that financial institution or registered bank directly or indirectly controls the management of that person; or
(d) that financial institution or registered bank has a direct or indirect qualifying interest in 20% or more of the voting or non-voting securities issued by that person.
(3) For the purposes of section 77A, transaction includes the—
(a) sale or transfer of property or securities; and
(b) issue or allotment of securities; and
(c) entering into, or giving effect to a provision in, a contract or arrangement; and
(d) arriving at, or giving effect to, an understanding.
(4) For the purposes of Part 5, a holding company of a registered bank has a substantial interest in a body if—
(a) that holding company directly or indirectly controls the management of that body; or
(b) that holding company has a direct or indirect qualifying interest in 20% or more of the voting securities issued by that body.
Compare: 1964 No 134 s 2; 1986 No 131 s 2
Section 2(1) banking group: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) clearing house: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) designated payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) director: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) disclosure statement: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) financial institution paragraph (d): amended, on 1 November 2006, by section 4 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
Section 2(1) financial year: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) holding company: inserted, on 24 March 1995, by section 2 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Section 2(1) home country supervisor: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) home jurisdiction: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) Minister: substituted, on 25 June 1997, by section 2 of the Treasurer (Statutory References) Act 1997 (1997 No 20).
Section 2(1) net income: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) New Zealand chief executive officer: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) non-voting security: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) operating expenses: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) operating expenses paragraph (b)(ii): amended, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 2(1) operating expenses paragraph (b)(iii): added, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 2(1) operator: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) overseas bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) overseas person: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) parent bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) participant: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) qualifying interest: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) restricted word: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) significant influence: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) specified security: substituted, on 25 August 2005, by section 75 of the Overseas Investment Act 2005 (2005 No 82).
Section 2(1) subsidiary: substituted, 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 2(1) trade mark: inserted, 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) voting right: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) voting right paragraph (b)(iii): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 2(1) voting right paragraph (b)(v): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 2(1) voting security: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(2): substituted, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(3): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(4): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
For the purposes of this Act, a reference to information or data that is false or misleading includes a reference to information or data that is false or misleading by reason of—
(a) the form or context in which it is published or supplied; or
(b) the omission of any other information that is material in the form and context in which it is published or supplied.
This Act shall bind the Crown.
(1) There shall continue to be a bank called the Reserve Bank of New Zealand.
(2) The Bank shall be a body corporate with perpetual succession and a common seal and shall be capable of acquiring, holding and disposing of real and personal property and of suing and being sued.
(3) Without limiting any other provision of this Act, the Bank shall have the rights, powers, and privileges of a natural person.
(4) The Bank is the same body corporate as that which was continued in existence by the Reserve Bank of New Zealand Act 1964.
Compare: 1964 No 134 s 3(1), (2)
The Bank may establish branches and agencies and appoint agents in New Zealand or elsewhere.
Compare: 1964 No 134 s 3(3)
The Bank shall act as the central bank for New Zealand.
Compare: 1964 No 134 s 8(1)(a); 1973 No 16 s 5
The primary function of the Bank is to formulate and implement monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices.
(1) The Minister shall, before appointing, or reappointing, any person as Governor, fix, in agreement with that person, policy targets for the carrying out by the Bank of its primary function during that person's term of office, or next term of office, as Governor.
(2) In the case of a person who is deemed to have been appointed as Governor under section 191(1), policy targets for that person's term of office shall be fixed by the Minister, in agreement with the Governor, within 30 days after the commencement of this Act.
(3) Policy targets may be fixed for the term of office of the Governor, or for specified periods during the term of office of the Governor, or for both.
(4) The Minister and the Governor may, from time to time,—
(a) review or alter any policy targets fixed under this section; or
(b) substitute new policy targets for targets fixed under this section.
(5) Where policy targets are fixed under this section,—
(a) the Minister shall ensure that they are recorded in writing; and
(b) the Governor shall ensure that they are tabled at the first Board meeting held after the date on which they are fixed; and
(c) the Minister shall, as soon as practicable after they are fixed, publish them in the Gazette and lay a copy of them before the House of Representatives.
In formulating and implementing monetary policy the Bank shall—
(a) have regard to the efficiency and soundness of the financial system:
(b) consult with, and give advice to, the Government and such persons or organisations as the Bank considers can assist it to achieve and maintain the economic objective of monetary policy.
It is the duty of the Governor to ensure that the actions of the Bank in implementing monetary policy are consistent with the policy targets fixed under section 9.
(1) The Governor-General may, from time to time, by Order in Council, on the advice of the Minister, direct the Bank to formulate and implement monetary policy for any economic objective, other than the economic objective specified in section 8, for such period not exceeding 12 months as shall be specified in the order.
(2) Notwithstanding anything in section 8, the Bank shall formulate and implement monetary policy in accordance with any economic objective specified in an Order in Council in force under subsection (1).
(3) The Governor-General may, by Order in Council, on the advice of the Minister, before the period specified in an Order in Council made under subsection (1) expires, extend the period specified in that order for a period, which shall be specified in the order, not exceeding 12 months, and may in the same manner extend that period on successive occasions.
(4) Every Order in Council made under subsection (1) shall expire with the close of the last day of the period specified in the order or any extension of that period.
(5) An Order in Council made under subsection (1) may be revoked.
(6) The Minister shall, as soon as practicable after the making of an Order in Council under this section, publish a copy of the order in the Gazette and lay a copy of the order before the House of Representatives.
(7) While an Order in Council made under subsection (1) remains in force,—
(a) the policy targets fixed under section 9 shall cease to have effect; and
(b) the Minister and the Governor shall,—
(i) within 30 days of the making of the order, or the making of an Order in Council under subsection (3), as the case may be, fix new policy targets for the period that the order remains in force; and
(ii) within 30 days of the expiry or revocation of the order, fix new policy targets for the carrying out by the Bank of its primary function.
(8) Subsections (4) and (5) of section 9 shall apply in relation to any policy targets fixed under subsection (7)(b) of this section.
Except as provided in sections 9 to 12, nothing in this Act or in any other Act whether passed before or after the commencement of this Act limits or affects the obligation of the Bank to carry out its primary function.
Where the Bank gives advice to the Minister under any provision of this Act and the Governor considers that giving effect to that advice would, or would be likely to, affect the monetary policy of the Bank, the Governor shall advise the Minister of—
(a) the effect, or likely effects, on monetary policy; and
(b) any action that may be taken by the Bank in implementing the Bank's monetary policy if effect is given to that advice.
(1) The Bank shall deliver to the Minister and publish, in accordance with subsection (1A), policy statements for the period of 6 months from and after the date of publication.
(1A) The Bank shall deliver and publish a policy statement on or before 1 October 1990 and thereafter at intervals not exceeding 6 months from the date of publication of each preceding statement.
(1B) The Bank shall, if directed to do so by the Minister, in addition to its obligation under subsection (1), deliver to the Minister and publish policy statements at such intervals and for such periods as may be specified in the direction.
(2) The policy statement shall be signed by the Governor and shall—
(a) specify the policies and means by which the Bank intends to achieve the policy targets fixed under section 9:
(b) state the reasons for adopting those policies and means:
(c) contain a statement of how the Bank proposes monetary policy might be formulated and implemented during the next 5 years:
(d) contain a review and assessment of the implementation by the Bank of monetary policy during the period to which the preceding policy statement relates.
(3) Every policy statement stands referred, by virtue of this section, to the House of Representatives.
Section 15(1): substituted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).
Section 15(1A): inserted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).
Section 15(1B): inserted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).
Section 15(3): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
For the purposes of performing its functions and fulfilling its obligations under this Act or any other enactment, the Bank may deal in foreign exchange, on such terms and conditions as it thinks fit,—
(a) with any person, including the Crown; and
(b) on behalf of any person, including the Crown.
Section 16: substituted, on 10 September 2008, by section 7 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Minister may, for the purpose of influencing the exchange rate or exchange rate trends, from time to time, by notice in writing to the Bank, direct the Bank to deal in foreign exchange within guidelines prescribed by the Minister in the notice.
(2) Notwithstanding section 16, while the direction remains in force all foreign exchange dealing by the Bank shall comply with the direction.
(3) The Minister may, from time to time, by notice in writing to the Bank, vary or revoke any direction given under subsection (1).
(1) Subject to this section, the Minister may from time to time, by notice in writing to the Bank,—
(a) direct that all foreign exchange dealing by the Bank shall be at rates of exchange, or within a range of rates of exchange, specified by the Minister in the direction:
(b) direct the Bank to deal in foreign exchange at those rates or within that range of rates with such persons or class or classes of persons as may be specified by the Minister in the direction.
(2) Notwithstanding sections 16 and 17, the Bank shall, on receiving a direction under this section,—
(a) conduct its foreign exchange dealing at the rates, or within the range of rates, specified:
(b) deal in foreign exchange at those rates, or within that range of rates, with such of the persons or class or classes of persons specified in the direction as may require the Bank to do so.
(3) The Minister may from time to time, by notice in writing to the Bank, vary or revoke any direction given under subsection (1).
(4) The Minister shall not give a direction under subsection (1) unless the Minister has been authorised to do so by the Governor-General by Order in Council within 30 days before the direction is given and a separate authorisation shall be required for each separate occasion on which a direction is given.
(5) The Minister shall give notice in the Gazette of the fact that a direction has been given and that a direction has been revoked.
(1) If the Governor considers that the giving effect to by the Bank of a direction under either section 17 or section 18 would, while not being inconsistent with the economic objective of monetary policy, be inconsistent with achieving the policy targets fixed under section 9, the Governor may, by notice in writing to the Minister, advise the Minister that the Bank will, in giving effect to the direction, be unable to achieve those policy targets and request new policy targets to be fixed.
(2) Where a notice is given under this section—
(a) the Bank is not required to achieve the existing policy targets:
(b) the Minister and the Governor shall, within 1 month after the notice is given, substitute new policy targets in accordance with section 9(4)(b) and, in that event, the provisions of section 9(5) shall apply to those policy targets.
(1) If the Governor considers that the giving effect to by the Bank of a direction under either section 17 or section 18 would be inconsistent with the economic objective of monetary policy the Governor may, by notice in writing, advise the Minister that the Bank does not propose to give effect to the direction.
(2) Where a notice is given under this section the Bank shall not, unless an Order in Council is made under section 12 that requires the Bank to formulate and implement monetary policy in accordance with an economic objective that is consistent with the direction, be required to comply with that direction.
(1) The Bank shall pay into the Crown Bank Account any exchange gains (whether realised or unrealised) made by the Bank as a result of dealing in foreign exchange under sections 17 and 18.
(2) The Minister shall, without further appropriation, pay to the Bank out of the Crown Bank Account the amount of any exchange losses (whether realised or unrealised) incurred by the Bank as a result of dealing in foreign exchange under sections 17 and 18.
(1) The Governor may, if the Governor is satisfied that it is necessary to avoid disorder in the foreign exchange market, from time to time, by notice in writing to all registered banks, direct that, subject to any exceptions specified in the notice, no registered bank shall, except with permission granted by the Bank, deal until further notice in any foreign exchange or foreign exchange of such kinds as are specified in the notice.
(2) The Governor shall, as soon as practicable, give notice in writing to the Minister of the exercise of the power conferred under subsection (1).
(3) Every notice under subsection (1) shall remain in force until it is revoked—
(a) by Order in Council; or
(b) by notice in writing given by the Governor to all registered banks.
(4) An obligation on a person to do a thing on a day on which that person is prevented from doing it by a notice under this section, or is unable to do it by reason of any such notice, shall be deemed to be complied with if that person does it as soon as practicable after the notice is revoked.
(5) Where any transaction to which a notice issued under this section applies is subject to the Bills of Exchange Act 1908 or the Banking Act 1982, then, in relation to that transaction, every day on which the notice remains in force shall be deemed to be a non-business day for the purposes of the Bills of Exchange Act 1908.
Compare: 1964 No 134 s 26A; 1986 No 131 s 8
The Bank shall, from time to time, advise the Minister on—
(a) foreign exchange rate systems:
(b) the management of foreign reserves:
(c) the operation of the foreign exchange market:
(d) any other matters relating to foreign exchange.
(1) The Minister shall, from time to time, in consultation with the Bank, determine the level at which, or the levels within which, foreign reserves shall be maintained for the purpose of enabling the Bank to exercise the powers conferred by this Act.
(2) The Bank must hold and maintain foreign reserves at that level or within those levels.
Section 24(2): substituted, on 10 September 2008, by section 8 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Bank shall have the sole right to issue bank notes and coins in New Zealand.
(2) The Bank shall determine the denominations, form, design, content, weight, and composition of its bank notes and coins.
(3) Every bank note issued by the Bank before the commencement of this Act, and every coin issued by the Minister under the Decimal Currency Act 1964 or under the Coinage Act 1933 by virtue of the Decimal Currency Act 1964, which is legal tender at the commencement of this Act shall be deemed for all purposes to have been made or issued under this Act.
Compare: 1964 No 27 s 10; 1964 No 134 s 20(1), (3)
(1) The Bank may, from time to time, with the prior consent of the Minister, by notice in the Gazette, call in any bank notes or coins issued or deemed to have been issued under this Act.
(2) Every notice shall take effect on a date specified in it.
(3) When the notice takes effect, all bank notes or coins to which it applies shall cease to be legal tender; but the Bank shall continue to be liable to pay any such bank note or coin on presentation at the head office of the Bank.
(4) The Bank shall continue to be liable to pay any bank note issued before the commencement of this Act which has ceased to be legal tender before the commencement of this Act and which the Bank was, immediately before the commencement of this Act, liable to pay, on presentation at the head office of the Bank.
(5) The Bank shall be liable to pay any coin issued by the Minister before the commencement of this Act which has ceased to be legal tender before the commencement of this Act, on presentation at the head office of the Bank.
Compare: 1964 No 27 s 12; 1964 No 134 s 22
(1) Every bank note issued, or deemed to be issued, under this Act shall be a legal tender for the amount expressed in the note.
(2) A tender of payment of money, to the extent that it is made in coins issued, or deemed to be issued, under this Act, shall be a legal tender,—
(a) in the case of coins of a denomination of $10 or more, for the payment of any amount:
(b) in the case of coins of a denomination of $1 or more but less than $10, for the payment of any amount not exceeding $100:
(c) in the case of coins of the denomination of 5 cents or more, but less than $1, for the payment of an amount not exceeding $5:
(d) in the case of any coins of the denomination of less than 5 cents, for the payment of an amount not exceeding 20 cents.
(3) The references to coins and bank notes in subsections (1) and (2) do not include references to coins and bank notes that have been called in.
Compare: 1964 No 27 s 14; 1964 No 134 s 20(2)
(1) No person shall, without the prior consent of the Bank, wilfully deface, disfigure, or mutilate any bank note.
(2) No person who is a party to the defacement, disfigurement, or mutilation of any bank note, shall—
(a) pay away; or
(b) part with; or
(c) put in circulation; or
(d) demand payment of; or
(e) deposit or offer to deposit in any bank,—
that bank note.
(3) Every person who contravenes subsection (1) or subsection (2) commits an offence against this Act and is liable on summary conviction to a fine not exceeding $1,000.
Compare: 1964 No 134 s 23
(1) No person shall make or issue any bank note or coin, other than a bank note or coin issued under this Act.
(2) Every person who contravenes subsection (1) commits an offence against this Act and shall be liable on conviction on indictment,—
(a) in the case of an individual, to imprisonment for a term not exceeding 3 years or to a fine not exceeding $100,000:
(b) in the case of a body corporate, to a fine not exceeding $300,000.
(1) No person shall, without the prior consent of the Bank,—
(a) make, design, engrave, print, or reproduce; or
(b) use, issue, or publish—
any article or thing resembling a bank note or coin or so nearly resembling or having such a likeness to a bank note or coin as to be likely to be confused with or mistaken for it.
(2) Every person who contravenes subsection (1) commits an offence against this Act.
(3) Where a person is convicted of an offence against subsection (2), the court may order—
(a) the article or thing:
(b) any copy of it:
(c) any plates, blocks, dies, and other instruments used or capable of being used for printing or reproducing it—
in the possession of that person to be destroyed.
Compare: 1964 No 134 s 24(2); 1973 No 16 s 6
The Bank shall, if the Bank considers it necessary for the purpose of maintaining the soundness of the financial system, act as lender of last resort for the financial system.
The Bank may provide settlement account services for financial institutions on such terms and conditions as may be determined by agreement.
(1) On request by the Minister, the Bank must provide advice to the Minister on any matter specified in the request that is connected with the functions of the Bank.
(2) A request may not be made under subsection (1) that may limit the Bank in exercising its primary function in section 8.
(3) The Bank may also provide advice to the Minister, at any time, on any matters or subjects within the responsibility of the Bank.
Section 33: substituted, on 10 September 2008, by section 9 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) Subject to the Public Finance Act 1989, the Bank may, in accordance with an agreement with the Minister, undertake all or part of the banking business of the Government.
(2) Any such agreement may provide for the Bank to charge for the provision of banking services.
Compare: 1964 No 134 s 12
(1) The Bank may provide securities registry services for any person including services in connection with—
(a) the issue, registration, exchange, transfer, or replacement of securities:
(b) the calling and acceptance of tenders for securities:
(c) the making or receiving of payment in respect of any security.
(2) Securities registry services may be provided for such remuneration, and on such terms and conditions, as may be agreed by the Bank and the person for whom they are provided.
(1) For the purposes of enabling the Bank to carry out the functions and exercise the powers conferred on it by this Part, the Bank may, from time to time, by notice in writing to any financial institution, or by notice in the Gazette applying to any specified class of financial institutions, require the institution or, as the case may be, institutions of that class, to supply to the Bank such information and data relating to the business of the institution or institutions of that class for such periods, and in such form, as may be specified in the notice.
(2) Without limiting subsection (1), a notice may require information and data to be supplied relating to the assets and liabilities, income and expenditure (including interest rates charged and payable), fees and charges, obligations and commitments, and risk exposures of, and classes of transactions entered into by, that institution or class of institutions and any associated person and, where specified, in consolidated form, in respect of business carried on in New Zealand or elsewhere and whether as principal, broker, agent, or intermediary.
(3) A notice given pursuant to this section may, by a subsequent notice, be revoked, varied, or amended by the Bank.
(4) Information and data required to be supplied pursuant to this section shall be supplied to the Bank at such place in New Zealand and at such time as are specified in the notice.
(5) A financial institution shall not be required to supply data or information under this section relating to the affairs of a particular customer or client.
(6) Sections 156G to 156I and 156J(2)(c) and (d) (which relate to the publication or disclosure of information or data supplied to the Bank) apply with all necessary modifications in respect of information and data supplied to the Bank under this section as if for each reference to section 156C in sections 156G(1) and (3) and 156J(2)(c) there were substituted a reference to section 36.
Compare: 1964 No 134 s 38H(1), (2), (4)–(6); 1986 No 131 s 10
Section 36(6): added, on 10 September 2008, by section 10 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Every financial institution commits an offence against this Act if, without lawful justification or excuse, it—
(a) fails to comply in any respect with any of the provisions of section 36 or of any requirements of the Bank under that section; or
(b) supplies any information or data which it is required to supply under section 36 which is false or misleading in any material particular.
Compare: 1964 No 134 s 38H(7); 1986 No 131 s 10
(1) Where the Bank believes that any information or data supplied by a financial institution pursuant to section 36 is, or may be, inadequate or inaccurate, it may, by notice in writing to that financial institution, require that information or data to be audited by an auditor approved by the Bank.
(2) Every financial institution commits an offence against this Act if, without lawful justification or excuse, it fails to comply with a requirement under subsection (1).
Compare: 1964 No 134 s 38H(3); 1986 No 131 s 10
Without limiting section 5 or any other provision of this Act, the Bank has power, whether in New Zealand or elsewhere, to—
(a) carry on the business of banking:
(b) issue securities:
(c) give a fixed or floating charge over all or any part of the undertaking or property of the Bank:
(d) if the Bank ceases to carry out any function, make provision, whether or not it is in the Bank's interest to do so, for the benefit of employees of the Bank, or former employees, or their dependants:
(e) enter into agreements or arrangements and obtain assurances necessary or desirable for carrying out its functions and exercising its powers:
(f) carry on any business or exercise any powers, not inconsistent with any other function of the Bank, which can be conveniently carried on, or exercised in conjunction with its functions and the exercise of its powers.
(1) There shall be a Governor of the Bank who shall be appointed by the Minister on the recommendation of the Board.
(2) The Governor shall be the Chief Executive of the Bank.
(1) It is the duty of the Governor to ensure that the Bank carries out the functions imposed on it by this Act and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
(2) The Governor has the authority, in the performance of those functions, to act in relation to all matters that are not by this Act, or the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, required to be dealt with by the Board.
Section 41(1): amended, on 17 October 2009, by section 161(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (2009 No 35).
Section 41(2): amended, on 17 October 2009, by section 161(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (2009 No 35).
(1) The Governor shall be appointed for a term of 5 years and may be reappointed for a further term or terms, each of up to 5 years.
(2) The conditions of employment of the Governor, including remuneration, shall be—
(a) determined by agreement between the Minister and the Governor after consultation with the Board; and
(b) tabled at the first Board meeting after they are agreed.
(3) No condition of the agreement shall have effect if it is inconsistent with the Bank's functions or limits or prevents the Governor from ensuring that those functions are carried out.
(1) There shall be either 1 Deputy Governor or 2 Deputy Governors of the Bank who shall be appointed by the Board on the recommendation of the Governor.
(2) If 2 Deputy Governors are appointed, the Board shall, on the recommendation of the Governor, designate 1 of them as the Deputy Chief Executive of the Bank.
(3) Subject to this Act, the Deputy Governor or Deputy Governors, as the case may be, shall perform such duties and functions as are determined by the Governor.
(1) The Deputy Governor or Deputy Governors, as the case may be, shall be appointed for a term of 5 years and may be reappointed for a further term or terms, each of up to 5 years.
(2) The conditions of employment, including remuneration, of the Deputy Governor or Deputy Governors, shall be determined by the Board and shall specify the grounds on which the Governor may recommend that the Deputy Governor may be removed from office by the Board.
(1) The Board may, on the recommendation of the Governor, remove any Deputy Governor from office.
(2) A recommendation under subsection (1) may be made only on the grounds specified for that purpose in the conditions of employment of the Deputy Governor to whom the recommendation relates.
(1) No person shall be appointed or reappointed, or continue to hold office, as Governor, Deputy Governor, or a Deputy Governor, if that person—
(a) is a member of Parliament; or
(b) is an employee of a registered bank or of a deposit taker as defined in section 157C; or
(c) is 70 years of age or over; or
(d) is a chief executive of a Government department or an employee of a Government department, appointed under the State Sector Act 1988; or
(e) is a bankrupt who has not obtained a final order of discharge, or whose order of discharge has been suspended for a term not yet expired, or is subject to a condition not yet fulfilled; or
(f) is a person who is convicted of any offence punishable by imprisonment for a term of 2 years or more; or
(g) is a person who is convicted of any offence punishable by imprisonment for a term of less than 2 years and is sentenced to imprisonment for that offence; or
(h) is a person who would, but for the repeal of section 188 or section 189 or section 189A of the Companies Act 1955, be prohibited from being a director or promoter of, or in any way whether directly or indirectly taking part in the management of, a company within the meaning of that Act:
(i) [Repealed]
(j) is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, or the Securities Act 1978, or the Securities Markets Act 1988, or the Takeovers Act 1993.
(k) [Repealed]
(2) The Governor, the Deputy Governor, or a Deputy Governor, as the case may be, shall be deemed to have resigned office if that person is prohibited from continuing to hold office under this section.
Section 46(1)(b): amended, on 10 September 2008, by section 11 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 46(1)(d): amended, on 25 January 2005, by section 19(1) of the State Sector Amendment Act (No 2) 2004 (2004 No 114).
Section 46(1)(h): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 46(1)(i): repealed, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 46(1)(j): substituted, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 46(1)(j): amended, on 10 September 2008, by section 15(2) of the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).
Section 46(1)(k): repealed, on 10 September 2008, by section 15(3) of the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).
(1) In the case of the absence or incapacity of the Governor, the Deputy Chief Executive shall have all the duties, responsibilities, and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act.
(2) In the case of the absence or incapacity of the Governor and the Deputy Chief Executive, the Minister shall, on the recommendation of the Board, appoint—
(a) a director of the Bank; or
(b) an officer of the Bank—
to act as Governor.
(3) If the Minister is unable to make an appointment under subsection (2) by reason of the fact that, in the circumstances, it is impracticable for a meeting of the Board to be held, the Minister shall appoint—
(a) a director of the Bank; or
(b) an officer of the Bank—
to act as Governor for a period not exceeding 28 days.
(4) The person appointed to act as Governor shall, so long as the appointment continues, have all the duties, responsibilities, and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act.
(5) While any of the following persons is acting as Governor in accordance with this section, he or she must be taken to be a director of the Bank:
(a) the Deputy Chief Executive:
(b) a person appointed to act as Governor, but who is not a director of the Bank.
Compare: 1964 No 134 s 18(2), (6), (7)
Section 47(5): substituted, on 21 August 2003, by section 4 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If the office of Governor becomes vacant, the Minister shall, on the recommendation of the Board, appoint—
(a) a director of the Bank; or
(b) an officer of the Bank; or
(c) any other person—
to act as Governor for a period not exceeding 6 months or for the remainder of the Governor's term, whichever is less.
(2) Pending the appointment of a person to act as Governor under subsection (1), the Deputy Chief Executive shall act as Governor for a period of 28 days or until a person is appointed under that subsection, whichever is less.
(3) The person appointed to act as Governor or the Deputy Chief Executive, as the case may be, shall, so long as that person acts as Governor, have all the duties, responsibilities and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act.
(4) A person who is appointed to act as Governor under this section, but who is not a director of the Bank, shall, while acting as Governor, be deemed to be a director of the Bank.
(1) The Governor-General may, by Order in Council, on the advice of the Minister, remove the Governor from office.
(2) The Minister may tender advice under subsection (1) if the Minister is satisfied—
(a) that the Bank is not adequately carrying out its functions; or
(b) that the Governor has not adequately discharged the responsibilities of office; or
(c) that the Governor has obstructed, hindered, or prevented the Board from discharging its responsibilities under this Act; or
(d) that the performance of the Governor in ensuring that the Bank achieves the policy targets fixed under section 9 or section 12(7)(b) has been inadequate; or
(e) that, in a case where section 9(2) or subparagraph (i) or subparagraph (ii) of section 12(7)(b) applies, the Minister and the Governor have not been able, within the time prescribed, to agree on new policy targets; or
(f) that a policy statement made pursuant to section 15 is inconsistent in a material respect with the Bank's primary function or any policy target fixed under section 9 or section 12(7)(b); or
(g) that the resources of the Bank have not been properly or effectively managed; or
(h) that the Governor, except as provided in his or her conditions of employment, has, while holding office as Governor,—
(i) held any other office of profit; or
(ii) engaged in any other occupation for reward; or
(iii) had an interest in a registered bank or a deposit taker as defined in section 157C; or
(iv) had an interest in a bank carrying on business outside New Zealand; or
(i) that the Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty or misconduct.
(3) The Minister may tender advice under this section whether or not the Board has made a recommendation under section 53(3) that the Governor be removed from office.
Section 49(2)(h)(iii): amended, on 10 September 2008, by section 12 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Governor-General may, by Order in Council, on the advice of the Minister, remove the Deputy Governor or a Deputy Governor from office.
(2) The Minister may tender advice under subsection (1) if the Minister is satisfied that the Deputy Governor—
(a) [Repealed]
(b) has been guilty of misconduct; or
(c) has obstructed, hindered, or prevented the Governor from discharging the responsibilities of the Governor under this Act; or
(d) except as provided in his or her conditions of employment, has, while holding office as Deputy Governor,—
(i) held any other office of profit; or
(ii) engaged in any other occupation for reward; or
(iii) had an interest in a registered bank or a deposit taker as defined in section 157C; or
(iv) had an interest in a bank carrying on business outside New Zealand.
(3) If a person who holds office as the Deputy Governor or as a Deputy Governor is removed from office under this section, that person shall, unless that person's conditions of employment provide for that person to cease to be employed as an officer of the Bank in the event of removal from office of Deputy Governor under this section, continue to be employed by the Bank.
Section 50(2)(a): repealed, on 21 August 2003, by section 5 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 50(2)(d)(iii): amended, on 10 September 2008, by section 13 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Governor may, at any time, delegate to the Deputy Chief Executive any of the Governor's functions and powers including the power of delegation under subsection (2).
(2) The Governor may, at any time, delegate any of the Governor's functions and powers—
(a) if there is more than 1 Deputy Governor of the Bank, to the Deputy Governor who is not the Deputy Chief Executive:
(b) to any officer of the Bank.
(3) The fact that the Deputy Chief Executive exercises any powers or functions of the Governor shall be conclusive proof of the authority to do so, and no person shall be concerned to inquire whether the occasion for doing so has arisen or has ceased.
(4) A Deputy Governor who is not the Deputy Chief Executive and any officer of the Bank who purports to act pursuant to any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.
(5) Subject to any general or special directions given or conditions attached by the Governor, any person to whom any powers or functions are delegated under this section may exercise them in the same manner and with the same effect as if they had been conferred directly by this Act or under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, and not by delegation.
(6) A delegation under this section may be revoked at any time.
(7) A delegation of any power or function under this section shall not prevent the exercise of the power or function by the Governor.
(8) Any such delegation, until it is revoked, shall continue in force according to its tenor, notwithstanding that the Governor who made it may have ceased to hold office.
(9) To avoid doubt, the Governor's functions and powers include his or her functions and powers under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
Compare: 1964 No 134 s 18(3), (4)
Section 51(5): amended, on 17 October 2009, by section 161(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (2009 No 35).
Section 51(9): added, on 17 October 2009, by section 161(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (2009 No 35).
There shall be a board of directors of the Bank.
(1) Subject to this Act, the Board of the Bank shall—
(a) keep under constant review the performance of the Bank in carrying out—
(i) its primary function; and
(ii) its functions relating to promoting the maintenance of a sound and efficient financial system; and
(iii) its other functions under this Act or any other enactment:
(b) keep under constant review the performance of the Governor in discharging the responsibilities of that office:
(c) keep under constant review the performance of the Governor in ensuring that the Bank achieves the policy targets agreed to with the Minister under section 9 or section 12(7)(b):
(d) determine whether policy statements made pursuant to section 15 are consistent with the Bank's primary function and the policy targets agreed to with the Minister under section 9 or section 12(7)(b):
(e) keep under constant review the use of the Bank's resources.
(2) The Board may give advice to the Governor on any matter relating to the performance of the Bank's functions and the exercise of its powers.
(3) If the Board is satisfied—
(a) that the Bank is not adequately carrying out its functions; or
(b) that the Governor has not adequately discharged the responsibilities of that office; or
(c) that the performance of the Governor in ensuring that the Bank achieves the policy targets fixed under section 9 or section 12(7)(b) has been inadequate; or
(d) that a policy statement made pursuant to section 15 is inconsistent in a material respect with the Bank's primary function or any policy target fixed under section 9 or section 12(7)(b); or
(e) that the resources of the Bank have not been properly or effectively managed; or
(f) that the Governor, except as provided in his or her conditions of employment has, while holding office as Governor,—
(i) held any other office of profit; or
(ii) engaged in any other occupation for reward; or
(iii) had an interest in a registered bank or a deposit taker as defined in section 157C; or
(iv) had an interest in a bank carrying on business outside New Zealand; or
(g) that the Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty, or has been guilty of misconduct,—
the Board shall advise the Minister in writing and may recommend to the Minister that the Governor be removed from office.
Section 53(1)(a): substituted, on 10 September 2008, by section 14(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 53(3)(f)(iii): amended, on 10 September 2008, by section 14(2) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Board must prepare, for each financial year, a report setting out the Board's assessment of the matters referred to in section 53(1).
(2) The report must—
(a) be signed by the chairperson and 1 other non-executive director; and
(b) be delivered to the Minister within 3 months after the end of the financial year.
(3) The report stands referred, by virtue of this section, to the House of Representatives.
Section 53A: inserted, on 21 August 2003, by section 6 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 53A(3): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
(1) The Board must consist of—
(a) not less than 5, and not more than 7, non-executive directors appointed by the Minister; and
(b) the Governor.
(2) The appointment of every non-executive director must be notified in the Gazette.
(3) The Governor is the only person employed in the service of the Bank who may be a director of the Bank.
(4) The validity of any act of the Board is not affected by—
(a) any vacancy in its membership; or
(b) any defect in the appointment of a director; or
(c) the fact that any non-executive director is disqualified from appointment under section 58.
(5) Subsection (3) is subject to sections 47 and 48.
Section 54: substituted, on 21 August 2003, by section 7 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Except as provided in subsection (2) and in sections 57 to 59, every non-executive director shall hold office for a term of 5 years.
(2) The first non-executive directors of the Bank appointed under this Act shall be appointed for terms, not exceeding 5 years, which ensure that not more than 2 of those directors retire in the same year.
(3) A non-executive director may from time to time be reappointed.
(4) A non-executive director may at any time resign office by notice in writing to the Minister.
In considering the appointment or reappointment of a person to the office of non-executive director of the Bank, the Minister shall have regard, in relation to that office, to—
(a) that person's knowledge, skill, and experience; and
(b) the likelihood of any conflict between the interests of the Bank and any interests which that person has or represents.
(1) If a non-executive director dies, or resigns or is removed from office, that office shall become vacant and the vacancy shall be deemed to be an extraordinary vacancy.
(2) A non-executive director shall be deemed to have resigned office if that director—
(a) is prohibited by section 58 from holding office as a director; or
(b) fails, without the Board's consent, to attend 3 consecutive meetings of the Board.
(3) The manner of filling an extraordinary vacancy shall be the manner prescribed by section 54.
(4) A person who is appointed to fill an extraordinary vacancy shall be appointed for the residue of the term of the vacating director.
No person shall be appointed, or reappointed, to the office of non-executive director of the Bank, or hold that office, if that person—
(a) is a member of Parliament; or
(b) is an employee of a registered bank; or
(c) is a bankrupt who has not obtained a final order of discharge, or whose order of discharge has been suspended for a term not yet expired, or is subject to a condition not yet fulfilled; or
(d) is a person who is convicted of any offence punishable by imprisonment for a term of 2 years or more; or
(e) is a person who is convicted of any offence punishable by imprisonment for a term of less than 2 years and is sentenced to imprisonment for that offence; or
(f) is a person who would, but for the repeal of section 188 or section 189 or section 189A of the Companies Act 1955, be prohibited from being a director or promoter of, or in any way whether directly or indirectly taking part in the management of, a company within the meaning of that Act:
(g) [Repealed]
(h) is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, or the Securities Act 1978, or the Securities Markets Act 1988, or the Takeovers Act 1993.
(i) [Repealed]
Compare: 1964 No 134 s 5; 1986 No 131 s 5
Section 58(f): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 58(g): repealed, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 58(h): substituted, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 58(i): repealed, on 10 September 2008, by section 15(4) of the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).
(1) The Governor-General may, by Order in Council, on the advice of the Minister, remove a non-executive director of the Bank from office.
(2) The Minister may tender advice under subsection (1) if the Minister is satisfied that the director—
(a) is unable, or has failed, to perform the duties of a director of the Bank under this Act; or
(b) has been guilty of misconduct; or
(c) has obstructed, hindered, or prevented the Governor from discharging the responsibilities of the Governor under this Act.
(1) The non-executive directors of the Bank must appoint 1 of their number, by majority vote, to be chairperson of the Board.
(2) A chairperson holds that office for a term of 12 months unless he or she—
(a) resigns from that office; or
(b) is removed from that office, at any time, by a majority vote of the non-executive directors; or
(c) ceases to be a non-executive director.
(3) A chairperson whose term of office has expired—
(a) is eligible for reappointment so long as he or she continues to be a non-executive director; and
(b) continues to hold that office until a successor is appointed.
(4) A vacancy in the office of chairperson must be filled as soon as practicable in the manner set out in subsection (1).
Section 59A: inserted, on 21 August 2003, by section 8 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Board may meet as often as necessary, but must meet at least 6 times each financial year.
(2) The chairperson, or any 2 directors, may, at any time, call a meeting of the Board.
(3) At any meeting of the Board, the quorum necessary for the transaction of business is 4 directors.
(4) All questions arising at any meeting of the Board that cannot be resolved by consensus must be decided by a majority of the votes cast by the directors present.
(5) If a vote is tied, the chairperson or, if the chairperson is not present, the director presiding at the meeting has a casting vote.
(6) Subject to this Act, the Board may regulate its own procedure.
Section 60: substituted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
A resolution is as valid and effectual as if it had been passed at a meeting of the Board duly called and constituted if—
(a) a telephone or video conference of at least 4 directors is held; and
(b) notice of the conference has been given under section 60B and all reasonable efforts have been made to enable every director to participate in the conference; and
(c) each director who participates in the conference is able to individually express his or her views, and vote, on any question arising during the meeting; and
(d) the resolution is assented to by a majority of the directors participating in the conference.
Section 60A: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The person or persons calling a meeting must ensure that each director is given—
(a) at least 2 days' notice of a meeting; or
(b) if a meeting is to be convened as a matter of urgency, reasonable notice of the meeting.
(2) The notice must—
(a) indicate the business to be transacted at the meeting; and
(b) be given in writing or, if the director to whom the notice is to be given agrees, orally.
(3) A notice in writing may be given by personal delivery, by post, or by electronic transmission (for example, by fax or email).
(4) At a meeting of the Board, any director may, with the leave of the chairperson or the majority of the directors present, raise any matter for the consideration of the Board, even though that matter has not been included in the notice of meeting under subsection (2)(a).
(5) For the purposes of subsection (1), it is enough if the person or persons calling a meeting made all reasonable efforts to ensure each director was given the notice by the time required under that subsection.
Section 60B: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) At all meetings of the Board, the chairperson presides if he or she is present and willing to do so.
(2) The non-executive directors present must appoint 1 of their number to be the chairperson for the meeting if—
(a) the chairperson is not present; or
(b) there is no chairperson; or
(c) the chairperson is present, but is unwilling or unable to preside.
(3) The person appointed under subsection (2) has and may exercise all the powers, duties, and functions of the chairperson for the purposes of that meeting.
Section 60C: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A director who is interested in a contract or proposed contract with the Bank, or in the exercise or proposed exercise by the Bank of a power, shall declare that interest at every meeting of the Board at which that contract or proposed contract, or the exercise or proposed exercise of the power, is considered by the Board.
(2) A director who is interested in a contract or proposed contract or in the exercise or proposed exercise of a power—
(a) is not entitled to vote on a resolution that relates to the contract or proposed contract or the exercise or proposed exercise of the power:
(b) shall not be counted for the purpose of determining whether a quorum is present when—
(i) the contract or proposed contract or the exercise or proposed exercise of the power is considered by the Board; or
(ii) a resolution relating to the contract or proposed contract or the exercise or proposed exercise of the power is voted on.
Section 61(2): substituted, on 8 August 1990, by section 3 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).
(1) The Board may, from time to time, appoint committees of 1 or more directors and may delegate any of its functions and powers, except this power of delegation, to such committees.
(2) The Board may from time to time—
(a) discharge, alter, or reconstitute a committee; or
(b) discharge a member of a committee and appoint another member in that member's place.
(3) Subject to any direction given by the Board, the functions and powers delegated to a committee may be performed or exercised with the same effect as if they had been conferred by this Act and not by delegation.
(4) A committee purporting to act under delegation shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the delegation.
(5) A delegation may be revoked by the Board at any time.
(6) A delegation does not prevent the Board from performing or exercising its functions and powers.
(7) A delegation to a committee shall continue in force even though the membership of the Board or the committee changes.
(8) Subject to this Act and to any directions given by the Board, a committee may regulate its own procedure.
(1) The Bank shall pay the non-executive directors such fees as the Minister, after considering any recommendation by the Board, determines.
(2) The Bank shall pay the non-executive directors travelling and other expenses incurred in carrying out their duties.
Compare: 1964 No 134 s 15; 1980 No 138 s 2(1)
Part 4: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) No person may—
(a) be formed, incorporated, or registered using a name or title that includes a restricted word; or
(b) change a person's name or title to a name or title that includes a restricted word; or
(c) carry on any activity directly or indirectly in New Zealand (whether through an agent or otherwise) using a name or title that includes a restricted word.
(2) Subsection (1) does not apply to—
(a) the Bank; or
(b) a registered bank; or
(c) any person who is authorised by the Bank under section 65 to use a name or title that includes a restricted word but only to the extent that the person is acting within the scope of that authorisation; or
(d) any person who is exempted under section 66 but only to the extent that the person is acting within the scope of that exemption.
(3) Despite subsection (2)(b), a registered bank must not use, without an authorisation from the Bank under section 65(1)(e), a name or title that includes a restricted word in respect of a unit trust of which the registered bank is a trustee or a manager within the meaning of the Unit Trusts Act 1960.
(4) Subsection (2)(b) does not extend to a person carrying on any activity by means of, or through the agency of, a registered bank.
(5) A person commits an offence if the person contravenes this section.
(6) The penalty for an offence against this section is set out in section 66M.
(7) In this section (except subsection (1)(a) to (c)) and sections 65 and 66, use, in relation to a restricted word, means act in a manner prohibited by subsection (1)(a) to (c) (as the context requires).
Section 64: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank may authorise any of the following persons to use a name or title that includes a restricted word:
(a) a person licensed or registered as a bank in a country other than New Zealand:
(b) a class of persons licensed or registered as banks in a country other than New Zealand:
(c) a person that is formed, incorporated, or registered to represent the interests of—
(i) any registered bank; or
(ii) any person connected with a registered bank:
(d) an associated person of a registered bank:
(e) a registered bank or an associated person of a registered bank that intends to use a name or title that includes a restricted word in respect of a unit trust of which the registered bank or the associated person is a trustee or manager within the meaning of the Unit Trusts Act 1960:
(f) a person that is not a financial institution.
(2) In the case of an authorisation under subsection (1)(a), the Bank must—
(a) give the authorisation by notice in writing to the person; and
(b) impose both of the following conditions:
(i) the condition that the person use a particular name or title approved by the Bank; and
(ii) the condition that the person carry on in New Zealand only those activities specified by the Bank in the notice.
(3) In the case of an authorisation under subsection (1)(b), the Bank must—
(a) give the authorisation by notice in the Gazette ; and
(b) impose the condition that each member of the class of persons carries on in New Zealand only those activities specified by the Bank in the notice in the Gazette in respect of the class to which that member belongs.
(4) In the case of an authorisation under subsection (1)(c) to (f), the Bank must—
(a) give the authorisation by notice in writing to the person; and
(b) impose the condition that the person uses a particular name or title approved by the Bank.
(5) Nothing in subsections (2) to (4) prevents the Bank from imposing any other conditions to the authorisation that it thinks fit.
(6) The Bank may, at any time, revoke an authorisation, or vary or remove a condition of an authorisation, or add a condition of an authorisation, by,—
(a) in the case of an authorisation that relates to a person, notice in writing to the person; or
(b) in the case of an authorisation that relates to a class of persons, notice in the Gazette.
(7) Any authorisation given under this section applies to any other person (for example, the Registrar of Companies), but only to the extent that the acts of that person are necessary to allow the person to whom the authorisation is given to have the benefit of that authorisation.
Section 65: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Nothing in section 64(1) applies to a person using a name or title that includes a restricted word if—
(a) the restricted word signifies a geographic place name or the name of a natural person; and
(b) the name or title is not used in respect of a financial institution, or could not reasonably be mistaken for the name or title of a financial institution.
Section 66: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Nothing in sections 65 and 66 affects or limits the following sections of the Companies Act 1993:
(a) sections 20 to 24 (which relate to company names):
(b) section 333 (which relates to the reservation of the name of an overseas company).
Section 66A: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) No specified person may use a restricted word in any advertisement unless the advertisement contains a statement that complies with subsection (2).
(2) The statement must—
(a) state that the specified person is not a registered bank; and
(b) be communicated in a manner that ensures, as far as is reasonably practicable, that the statement attracts the attention of the persons to whom the advertisement is directed.
(3) A specified person commits an offence if the specified person contravenes this section.
(4) The penalty for an offence against this section is set out in section 66M.
(5) In this section and sections 66D and 66M,—
advertisement —
(a) means any thing used to promote—
(i) the interests of a specified person; or
(ii) the services or products of that person; and
(b) includes a trade mark of a specified person; but
(c) does not include the name or title of a specified person
specified person means a person that—
(a) is a financial institution; and
(b) is not a registered bank.
Section 66B: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If the Bank believes or has reasonable grounds for believing that there has been a contravention of section 64 or section 66B, the Bank, for the purpose of determining whether there has been a contravention of either of those sections, may, by notice in writing, require any person to—
(a) produce to the Bank a document in the person's possession, custody, or control:
(b) supply the Bank with information or an explanation about any information.
(2) The Bank may exercise the power in subsection (1) only if the Bank has reasonable cause to believe that the person may have information or documents relevant to the purpose of that subsection.
(3) A person to whom a notice is given must comply with the notice within the period of time specified by the Bank (which period must be reasonable in the circumstances).
(4) A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
(5) The penalty for an offence against this section is set out in section 66M.
Section 66C: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If the Bank is satisfied on reasonable grounds that a person has contravened, or is contravening, section 64 or section 66B, it may, by notice in writing, require that person to—
(a) change that person's name or title to a name or title that does not include a restricted word:
(b) cease using a restricted word in an advertisement:
(c) cease carrying on any activity using a name or title that includes a restricted word.
(2) The Bank may require any person to whom a notice is given to supply the Bank with information or documents that may be necessary for the Bank to verify that the notice has been complied with.
(3) A person must comply with a requirement of the Bank under this section within the period of time specified by the Bank (which period must be reasonable in the circumstances).
(4) A person commits an offence if the person fails to comply with this section.
(5) The penalty for an offence against this section is set out in section 66M.
Section 66D: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies if the Bank has reasonable cause to believe—
(a) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or misleading in a material particular; or
(b) that a person has failed to comply with any requirement to supply information or documents under section 66C or section 66D(2).
(2) If this section applies, the Bank may appoint, in writing, any suitably qualified person to enter and search any premises.
(3) A person appointed under subsection (2) may—
(a) inspect, remove, and take copies of any documents relating to the use of a restricted word that may be in the possession, custody, or control of any person; and
(b) if necessary, require the reproduction in usable form of any information recorded or stored in those documents.
(4) A person commits an offence if, without lawful justification or excuse, the person hinders, obstructs, or delays the conduct of any search by a person appointed under subsection (2).
(5) The penalty for an offence against this section is set out in section 66M.
Section 66E: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person appointed under section 66E(2) must not enter and search any premises, or inspect, remove, or take copies of any documents in the possession, custody, or control of any person, or require the reproduction in usable form of any information recorded or stored in any documents, unless—
(a) the occupier of the premises, or the person who has possession, custody, or control of the documents, agrees; or
(b) the person appointed under section 66E(2) obtains a warrant under section 66I.
(2) A person authorised to enter and search any premises under a warrant must, on first entering those premises and, if requested, at any subsequent time, produce—
(a) evidence of that person's authority to enter the premises; and
(b) evidence of that person's identity.
Section 66F: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies to information or documents supplied or disclosed to, or obtained by, the Bank for the purposes of, or in connection with, the exercise of powers conferred by this Part.
(2) The Bank, any officer or employee of the Bank, or a person appointed under section 66E(2) must not publish or disclose any information or documents to which this section applies except—
(a) with the consent of the person to whom the information relates or of the person to whom the information is confidential; or
(b) to the extent that the information is available to the public under any Act, including the Official Information Act 1982, or is otherwise publicly available; or
(c) for the purposes of, or in connection with, the exercise of powers conferred by this Part; or
(d) in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or
(e) to any central bank, authority, or body in any other country that exercises functions that correspond with, or are similar to, those conferred on the Bank under this Act for the purposes of the exercise by that central bank, authority, or body of those functions; or
(f) to any person who the Bank is satisfied has a proper interest in receiving the information.
(3) The Bank, any officer or employee of the Bank, or a person appointed under section 66E(2) must not publish or disclose any information or documents under subsection (2)(e) or (f) unless the Bank is satisfied that satisfactory provision exists to protect the confidentiality of that information or those documents.
(4) A person referred to in subsection (5) commits an offence if the person contravenes this section.
(5) The persons are—
(a) any officer or employee of the Bank; or
(b) a person appointed under section 66E(2).
(6) The penalty for an offence against this section is set out in section 66M.
Section 66G: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person to whom any information or documents are published or disclosed under section 66G must not publish, disclose, or use that information or those documents unless the publication, disclosure, or use is,—
(a) in the case of a publication or disclosure under section 66G(2)(a), in accordance with the terms and conditions of the consent referred to in that paragraph:
(b) in the case of a publication or disclosure under section 66G(2)(c),—
(i) for the purposes of, or in connection with, the exercise of powers conferred by this Part; and
(ii) in accordance with any conditions that the Bank may have imposed:
(c) in the case of a publication or disclosure under section 66G(2)(f),—
(i) authorised by the Bank and in accordance with any conditions that the Bank may have imposed; or
(ii) necessary or desirable for the performance of any function or exercise of any power conferred by any enactment.
(2) A person commits an offence if the person contravenes this section.
(3) The penalty for an offence against this section is set out in section 66M.
Section 66H: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
A Judge of the High Court may issue a warrant to a person appointed under section 66E(2) if the Judge is satisfied, on application in writing made on oath, that there are reasonable grounds for believing —
(a) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or misleading in a material particular; or
(b) that a person has failed to comply with any requirement to supply information or documents under section 66C or section 66D(2).
Section 66I: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A warrant authorises the person named in it, at any time and, if necessary, by force, to—
(a) enter and search the premises specified in the warrant:
(b) inspect, remove, and take copies of documents that the person executing the warrant believes on reasonable grounds may be relevant:
(c) if necessary, require any information recorded or stored in those documents to be reproduced in usable form.
(2) The warrant continues in force for a period of 1 month or until the purpose for which it was granted has been satisfied, whichever is the lesser.
(3) Every person named in the warrant must, as soon as practicable after removing any documents from any premises, supply a copy of the documents to the person from whose possession, custody, or control the documents were removed.
Section 66J: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If any person commences any proceedings in any court in respect of the exercise of any powers conferred by section 66E, until a final decision in relation to those proceedings is given, the powers may be, or may continue to be, exercised as if the proceedings had not been commenced, and no person is excused from fulfilling any obligation under that section by reason of those proceedings.
(2) This section applies despite the provisions of any other Act or any rule of law.
Section 66K: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies if—
(a) any power conferred by section 66E has been exercised; and
(b) that exercise has been declared to be unlawful in a final decision given in proceedings in respect of the exercise of that power.
(2) The Bank must ensure that, as soon as practicable after the decision is given,—
(a) any information supplied by a person and any documents or records obtained as a result of the unlawful exercise of the power are returned to the person previously having possession, custody, or control of those documents or records, and any copies of those documents or records are destroyed:
(b) any documents or records derived from, or based on, the documents or records are destroyed.
(3) No information, documents, or records obtained as a result of the unlawful exercise of the power are admissible in evidence in any proceedings.
Section 66L: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person who commits an offence against any of the provisions listed in subsection (2) is liable, on summary conviction,—
(a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000; and
(b) in the case of a body corporate, to a fine not exceeding $1,000,000.
(2) The provisions are—
(a) section 64 (which relates to the use of restricted words in a name or title):
(b) section 66B (which relates to the use of restricted words in an advertisement):
(c) section 66C (which relates to failing to produce a document or supply information to the Bank after being required to do so):
(d) section 66D (which relates to failing to change a person's name or title or cease using a restricted word in an advertisement or cease carrying on any activity after being required to do so):
(e) section 66E (which relates to obstructing a person appointed to conduct a search):
(f) section 66G (which relates to breaches of confidentiality provisions):
(g) section 66H (which relates to further disclosures of information).
Section 66M: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
In this Part, unless the context otherwise requires,—
action that is likely to have a detrimental effect on financial system stability in Australia includes an action that prevents or interferes with any outsourcing arrangement
authorised deposit-taking institution has the same meaning as in section 5(1) of the Banking Act 1959 of the Parliament of the Commonwealth of Australia
outsourcing arrangement means an arrangement for business, or functions relating to any business, of an authorised deposit-taking institution to be carried on by a person other than that authorised deposit-taking institution
prescribed Australian financial authority means an Australian public authority prescribed by regulations made under section 68A.
Section 67A: inserted, on 15 December 2006, by section 5 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
The Bank shall in accordance with this Part—
(a) register banks; and
(b) undertake prudential supervision of registered banks.
Compare: 1964 No 134 s 38I; 1986 No 131 s 10
The powers conferred on the Governor-General, the Minister, and the Bank by this Part shall be exercised for the purposes of—
(a) promoting the maintenance of a sound and efficient financial system; or
(b) avoiding significant damage to the financial system that could result from the failure of a registered bank.
Compare: 1964 No 134 s 38J; 1986 No 131 s 10
(1) When performing functions or duties or exercising powers under this Part, the Bank must—
(a) support prescribed Australian financial authorities in meeting their statutory responsibilities relating to prudential regulation and financial system stability in Australia; and
(b) to the extent reasonably practicable, avoid any action that is likely to have detrimental effect on financial system stability in Australia.
(2) Subsection (3) applies where the Bank has reasonable cause to believe that an action it proposes to take is an action that is likely to have a detrimental effect on financial system stability in Australia.
(3) The Bank must, to the extent it considers reasonably practicable in the circumstances having regard to urgency or other similar constraint, consult with and consider the advice of every prescribed Australian financial authority it considers to be relevant in the circumstances before taking the proposed action.
(4) No performance of a function or duty or exercise of a power is invalid by reason only of a failure to comply with the provisions of this section.
(5) The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing Australian financial authorities for the purposes of this section and section 121A.
Section 68A: inserted, on 15 December 2006, by section 6 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
(1) The Minister may direct the Bank to have regard to a government policy that relates to the Bank’s functions under this Part and Parts 5B to 5D.
(2) The Bank must have regard to every direction given by the Minister under this section.
(3) The Minister must consult with the Bank before giving a direction.
(4) A direction must—
(a) be set out in a written statement signed by the Minister; and
(b) as soon as practicable after it is given, be—
(i) presented to the House of Representatives by the Minister; and
(ii) published in the Gazette.
(5) The Minister may not give a direction that requires the performance or non-performance of a particular act by the Bank, or any employee or office holder of the Bank, or the bringing about of a particular result, in respect of a particular person.
(6) A direction may be amended, revoked, or replaced in the same way as it may be given.
Compare: 2004 No 115 ss 104(1), 113(1)(b), 114, 115(2)
Section 68B: inserted, on 10 September 2008, by section 15 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) The Bank must keep a public register of persons known as registered banks.
(2) The Bank must determine the form of the register and may amend the form from time to time as it considers necessary.
(3) The Bank must take all reasonable steps to ensure that the information contained in the public register is available to members of the public at all reasonable times.
Section 69: substituted, on 1 November 2006, by section 7 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
(1) Any person may apply to the Bank to be registered as a registered bank.
(2) Applications to be registered as a registered bank shall be—
(a) made in such manner as may be specified by the Bank; and
(b) accompanied by payment of such fee as may be determined by the Bank from time to time and approved by the Minister by notice in the Gazette.
(3) Every person who makes an application under this section shall furnish to the Bank such information as may be required by the Bank to assist it in determining the application.
(4) A person commits an offence if the person provides false or misleading information to the Bank for the purposes of an application.
(5) The penalty for an offence against this section is set out in section 156AC.
Compare: 1964 No 134 s 38C(3), (4), (5); 1986 No 131 s 10
Section 70(4): added, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 70(5): added, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A registered bank may, by notice in writing, require the Bank to remove the name of that registered bank from the register on a date specified in the notice, not being a date earlier than 28 days, or such shorter period as the Bank may agree to, after the date the notice is given.
(2) The registered bank shall, within 7 days of giving that notice, give public notice of the fact that it had given the notice to the Bank.
(3) The Bank must—
(a) remove the name of the registered bank from the register on the date specified in the notice; and
(b) within 7 days after that date, arrange for the publication in the Gazette of a notice that indicates the removal of that name.
(4) Except with the consent of the Bank, a registered bank shall not give a notice under subsection (1) if—
(a) a notice has been given to that registered bank under section 99(2)(a); or
(b) a person has been appointed under section 99(2)(b) to exercise, in relation to that registered bank, the powers conferred by that paragraph; or
(c) a person has been appointed under section 101 to carry out an investigation of the affairs of that registered bank; or
(d) a direction is in force under section 113 in relation to that registered bank; or
(e) the registered bank is subject to statutory management.
(5) The Bank may refuse to remove the name of a registered bank from the register if—
(a) a notice has been given to the registered bank under section 99(2)(a); or
(b) a person has been appointed under section 99(2)(b) to exercise, in relation to that registered bank, the powers conferred by that paragraph; or
(c) a person has been appointed under section 101 to carry out an investigation into the affairs of that registered bank; or
(d) a direction is in force under section 113 in relation to that registered bank; or
(e) the registered bank is subject to statutory management.
Section 71(3): substituted, on 21 August 2003, by section 12 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(4)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(4)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(4)(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(5)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(5)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(5)(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person commits an offence if the person—
(a) is not a registered bank; and
(b) uses any name, title, trade mark, style, designation, or description that represents or implies that the person is a registered bank.
(2) The penalty for an offence against this section is set out in section 156AC.
Section 72: substituted, on 21 August 2003, by section 13 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank shall not register any person as a registered bank unless it is satisfied that the business carried on, or proposed to be carried on, by the applicant consists of, or to a substantial extent consists of, or will, or will to a substantial extent, consist of, the borrowing and lending of money, or the provision of other financial services, or both.
(2) In determining an application under section 70, the Bank must have regard to all of the following:
(a) the incorporation and ownership structure of the applicant; and
(b) the size and nature of the applicant's business or proposed business, or any part of the applicant's business or proposed business; and
(c) the ability of the applicant to carry on its business or proposed business in a prudent manner; and
(d) the standing of the applicant in the financial markets; and
(e) the suitability for their positions of the directors and senior managers of the applicant; and
(f) the standing of the owner of the applicant in the financial markets; and
(g) any other matters that may be prescribed in regulations.
(3) For the purposes of subsection (2)(g), the Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters to which the Bank shall have regard in considering applications for registration.
(4) The Bank shall give notice in the Gazette of the registration of any person as a registered bank under this section.
Compare: 1964 No 134 s 38D(1), (2), (4); 1986 No 131 s 10
Section 73(2): substituted, on 21 August 2003, by section 14 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
In determining an application from an overseas person, the Bank must, in addition to the matters set out in section 73(2), have regard to all of the following:
(a) the law and regulatory requirements of the applicant's home jurisdiction that relate to—
(i) the recognition and priorities of claims of creditors or classes of creditors in the event of the insolvency of the applicant; and
(ii) the disclosure by the applicant of financial and other information of the kind that a registered bank must disclose under section 81; and
(iii) the accounting and auditing standards applicable to the applicant; and
(iv) the duties and powers of directors of the applicant; and
(v) the licensing, registration, authorisation, and supervision of the applicant; and
(b) the nature and extent of the financial and other information disclosed to the public by the applicant.
Section 73A: inserted, on 21 August 2003, by section 15 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
In determining an application from a subsidiary of an overseas person, the Bank must, in addition to the matters set out in section 73(2), have regard to all of the following:
(a) the law and regulatory requirements of the home jurisdiction of the overseas person that relate to—
(i) the disclosure by the overseas person of financial and other information of the kind that a registered bank must disclose under section 81; and
(ii) the accounting and auditing standards applicable to the overseas person; and
(iii) the duties and powers of the directors of the overseas person; and
(iv) the licensing, registration, authorisation, and supervision of the overseas person; and
(b) the nature and extent of the financial and other information disclosed to the public by the overseas person.
Section 73B: inserted, on 21 August 2003, by section 15 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person may be registered as a registered bank unconditionally or subject to any conditions that the Bank may impose.
(2) The Bank may, by notice in writing to a registered bank,—
(a) impose conditions of registration (whether or not the registration of the bank is subject to conditions); or
(b) vary, remove, add to, or substitute any conditions of registration.
(3) The Bank must not exercise a power referred to in subsection (2) unless—
(a) the Bank gives the registered bank not less than 7 days' notice in writing of the Bank's intention to do so; and
(b) the notice contains, or is accompanied by, a statement of the Bank's reasons; and
(c) the registered bank has a reasonable opportunity to make submissions to the Bank; and
(d) the Bank has regard to those submissions.
(4) The Bank may impose conditions that relate to any of the following matters:
(a) the matters to which the Bank must have regard under sections 73 to 73B in determining an application for registration, including any matters prescribed by regulations made under section 73(2)(g); and
(b) the matters referred to in section 78, including any matters prescribed by regulations made under that section; and
(c) the matters referred to in section 81, including any matters prescribed by an Order in Council made under that section.
(5) A registered bank commits an offence if the registered bank fails to comply with a condition of registration imposed by the Bank under this section.
(6) The penalty for an offence against this section is set out in section 156AB.
Section 74: substituted, on 21 August 2003, by section 16 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
The Bank shall publish the principles on which it acts, or proposes to act,—
(a) in determining applications for registration; and
(b) in imposing, varying, removing, or adding to conditions of registration.
(1) Every person, that immediately before the commencement of this Act, was a registered bank, or deemed to be a registered bank, pursuant to Part 5A of the Reserve Bank of New Zealand Act 1964, shall continue to be a registered bank as if that person had been registered under this Act.
(2) If that person was registered, or deemed to have been registered, under that Act subject to any conditions, those conditions shall continue to apply as if they had been imposed under section 74 of this Act.
(3) Nothing in subsection (1) or subsection (2) limits any other provisions of this Part.
(1) The Minister may, by notice in writing to the Bank given in accordance with a recommendation of the Bank, direct the Bank to cancel the registration of a registered bank.
(2) The Bank shall not make a recommendation under subsection (1) unless it is satisfied—
(a) that the registered bank was registered on information that was false or misleading in a material particular; or
(b) that, in relation to a registered bank,—
(i) there has been a change in any of the matters to which the Bank must have regard under section 73 (including a change in any of the matters prescribed by regulations made under section 73(2)(g)); and
(ii) the Bank considers the change to be materially adverse to the registered bank's standing or financial position; or
(ba) that, in relation to a registered bank,—
(i) there has been a transfer of direct or indirect control of the registered bank; and
(ii) the Bank considers the transfer to be materially adverse to the registered bank's standing or financial position; or
(bb) that, in relation to a registered bank,—
(i) there has been a change in any of the matters to which the Bank must have regard under section 73A or section 73B; and
(ii) the Bank considers the change to be materially adverse; or
(c) if the registered bank is a body corporate—
(i) that an order has been made for the winding up of that body corporate; or
(ii) that a resolution has been passed for the voluntary winding up of that body corporate; or
(iii) that a receiver has been appointed in respect of that body corporate; or
(d) [Repealed]
(e) that a condition of registration has not been complied with; or
(f) that the registered bank has not carried on its business in a prudent manner; or
(g) that the registered bank has failed to comply with an obligation imposed under this Act or imposed by regulations made under this Act.
(3) The Bank shall not make a recommendation under subsection (1) unless—
(a) the Bank gives the registered bank not less than 7 days' notice in writing of the Bank's intention to consider making the recommendation; and
(b) the notice contains or is accompanied by a statement of the Bank's reasons; and
(c) the registered bank has a reasonable opportunity to make submissions to the Bank; and
(d) the Bank has regard to those submissions.
(4) A copy of any written submission made by the registered bank shall be sent to the Minister together with any recommendation by the Bank.
(5) The Bank must, as soon as practicable after receiving a notice from the Minister under subsection (1),—
(a) inform the registered bank in writing of—
(i) the fact that the Minister has directed the Bank to cancel the registration of the registered bank; and
(ii) the grounds on which the Bank's recommendation to cancel the registration of the registered bank was made; and
(iii) the date of cancellation of the registration of the registered bank; and
(b) publish a notice of the cancellation in the Gazette.
Compare: 1964 No 134 s 38F(1), (2), (3)(a)–(e), (g), (4), (5); 1986 No 131 s 10
Section 77(1): substituted, on 21 August 2003, by section 17(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(b): substituted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(ba): inserted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(bb): inserted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(d): repealed, on 21 August 2003, by section 17(3)(a) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(g): amended, on 21 August 2003, by section 17(3)(b) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(3): substituted, on 24 March 1995, by section 4 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Section 77(5): substituted, on 21 August 2003, by section 17(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person must obtain the written consent of the Bank before giving effect to a transaction if,—
(a) in the case of a person who does not have a significant influence over a registered bank, the transaction would result in that person acquiring a significant influence over that registered bank; or
(b) in the case of a person who has, with the consent of the Bank, acquired a significant influence over a registered bank, the transaction would result in that person increasing the level of the person's significant influence over that registered bank beyond the level permitted in the existing consent; or
(c) in the case of a person who acquired a significant influence over a registered bank before the commencement of the Reserve Bank of New Zealand Amendment Act 2003, the transaction would result in that person increasing the person's significant influence over that registered bank beyond the existing level.
(2) The Bank may, in giving its consent,—
(a) specify the level of significant influence that a person may have or acquire over any registered bank without the need for a further consent; and
(b) impose any terms and conditions the Bank thinks fit.
(3) The Bank may, at any time, by notice in writing, vary or revoke—
(a) a consent given under this section; or
(b) any term or condition of a consent.
(4) A person commits an offence if the person fails to comply with subsection (1).
(5) The penalty for an offence against this section is set out in section 156AA.
(6) For the purposes of this section, a reference to a registered bank is a reference to a registered bank that is not an overseas person.
Section 77A: inserted, on 21 August 2003, by section 18 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Nothing in section 77A invalidates any contract, or transfer of ownership, made without the written consent of the Bank.
Section 77B: inserted, on 21 August 2003, by section 18 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) In—
(a) having regard, under section 73(2)(c), to the ability of an applicant for registration as a registered bank to carry on its business or proposed business in a prudent manner; or
(b) determining under section 77(2)(f) or section 113(1)(e) that a registered bank has not carried on its business in a prudent manner,—
the Bank shall confine its consideration to the following matters:
(c) capital in relation to the size and nature of the business or proposed business:
(d) loan concentration or proposed loan concentration and risk exposures or proposed risk exposures:
(e) separation of the business or proposed business from other business and from other interests of any person owning or controlling the applicant or registered bank:
(f) internal controls and accounting systems or proposed internal controls and accounting systems:
(fa) risk management systems and policies or proposed risk management systems and policies:
(fb) arrangements for any business, or functions relating to any business, of the applicant or registered bank to be carried on by any person other than the applicant or the registered bank:
(g) such other matters as may from time to time be prescribed in regulations.
(2) The Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters for the purposes of subsection (1)(g).
(3) The Governor may, from time to time, issue, in such manner as the Governor may determine, guidelines for the purpose of interpreting any of the matters referred to in paragraphs (c) to (g) of subsection (1).
Section 78(1)(b): amended, on 21 August 2003, by section 19(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 78(1)(fa): inserted, on 21 August 2003, by section 19(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 78(1)(fb): inserted, on 21 August 2003, by section 19(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 78(3): amended, on 24 March 1995, by section 5 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 79: repealed, on 1 January 1996, by section 6(1) of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
(1) The Bank may, by notice in writing to any registered bank or to all registered banks or to all members of any class of registered banks, require each of those banks to—
(a) obtain a rating of its creditworthiness or financial condition by a person or organisation nominated or approved by the Bank; and
(b) maintain a current rating of the type referred to in paragraph (a).
(2) The Bank may require a registered bank to publish the registered bank's current rating, and all the qualifications to that rating, in the manner and with the frequency that the Bank directs.
(3) A person commits an offence if the person fails to comply with this section.
(4) The penalty for an offence against this section is set out in section 156AC.
Section 80: substituted, on 21 August 2003, by section 20 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Governor-General may, by Order in Council made on the advice of the Minister that is given in accordance with a recommendation of the Bank, prescribe information or data that must be published by—
(a) all registered banks; or
(b) any class of registered banks specified in the order.
(2) A registered bank to which an Order in Council applies must publish the information or data specified in the order—
(a) in a document to be known as a disclosure statement; and
(b) in the manner and with the frequency specified in the order.
(3) The information or data that may be prescribed in an Order in Council includes, without limitation, information or data about—
(a) the corporate matters of a registered bank; and
(b) the financial matters of a registered bank; and
(c) the prudential matters of a registered bank; and
(d) any other matters relating to the business, operation, and management of a registered bank.
(4) The Order in Council must be published in the Gazette.
(5) The Regulations (Disallowance) Act 1989 applies to the Order in Council as if the order were a regulation within the meaning of section 2 of that Act.
Section 81: substituted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) An Order in Council made under section 81 may, in addition to the matters referred to in section 81(3), require a registered bank to disclose information or data—
(a) about an associated person of the registered bank if the associated person is incorporated, domiciled, or resident in New Zealand:
(b) about an associated person of the registered bank if the information or data is publicly available in the country in which the associated person is incorporated, domiciled, or resident and if that country is not New Zealand:
(c) about any individual member of its banking group, whether or not the member is incorporated, domiciled, or resident in New Zealand:
(d) about a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding company of the registered bank has a substantial interest.
(2) An Order in Council made under section 81 may also—
(a) prescribe the information that is required to be contained in accordance with generally accepted accounting practice (within the meaning of section 3 of the Financial Reporting Act 1993) in financial statements:
(b) require the publication of financial statements and notes to those statements for any period or periods specified in the order:
(c) require the information to be published in consolidated form:
(d) require financial information that is required to be published to be taken from audited financial statements:
(e) require the information that is required to be published to be audited and to be accompanied by an auditor's report:
(f) require a disclosure statement to contain any statements specified in the order that are made by—
(i) the directors of the registered bank or persons authorised in writing by the directors of the bank; and
(ii) in the case of an overseas incorporated registered bank, its New Zealand chief executive officer:
(g) incorporate by reference a framework, standard, specification, or requirement that is published by, or on behalf of, any body or person in any country—
(i) in whole or in part; and
(ii) with any modifications, additions, or variations specified in the Order in Council.
(3) Schedule 3 applies to any material incorporated by reference in an Order in Council made under section 81.
Section 81AA: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 81AA(2)(g): added, on 10 September 2008, by section 16(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 81AA(3): added, on 10 September 2008, by section 16(2) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(1) Despite sections 81 and 81AA, a registered bank is not required to publish in a disclosure statement any information or data about the affairs of a particular customer or client of—
(a) the registered bank; or
(b) an associated person of the registered bank; or
(c) a company in which a holding company of the registered bank has a substantial interest.
(2) Nothing in subsection (1) applies to the publication by a registered bank of information or data about transactions with related parties of—
(a) the registered bank; or
(b) an associated person of the registered bank; or
(c) a company in which a holding company of the registered bank has a substantial interest.
(3) Subsection (1) does not extend to the publication of the following matters:
(a) the amount of any loan or risk exposure (without disclosing the identity of the particular customer or client to whom it relates); or
(b) the number of loans or risk exposures that fall within a specified range of amounts and the actual amounts of those loans or risk exposures; or
(c) the number of loans or risk exposures that fall within a specified range of percentages or are above a specified percentage, as the case may be, of the capital or equity of the registered bank, or an associated person of the registered bank, or the banking group or a company in which a holding company of a registered bank has a substantial interest, and the actual amounts involved.
Section 81AB: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies to—
(a) an associated person of a registered bank; and
(b) a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding company of a registered bank has a substantial interest.
(2) A person to whom this section applies must, on being required by a registered bank to do so for the purpose of enabling the registered bank to comply with an Order in Council made under section 81, supply the registered bank with any information or data that the registered bank may be required to disclose under section 81AA if that information or data—
(a) is in the possession, custody, or control of that person; and
(b) is not in the possession, custody, or control of the registered bank.
(3) A person to whom this section applies commits an offence if, without lawful justification or excuse, the person fails to comply with a requirement of a registered bank under this section.
(4) The penalty for an offence against this section is set out in section 156AC.
Section 81AC: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Before making a recommendation under section 81(1) (including a recommendation to amend any Order in Council made under that subsection) the Bank must—
(a) consult with—
(i) the Securities Commission; and
(ii) registered banks that will be affected by any Order in Council made under that subsection; and
(iii) such other persons as the Bank considers will be substantially affected by any Order in Council made under that subsection or organisations representing those persons; and
(b) ensure that the persons referred to in paragraph (a) have a reasonable opportunity to make submissions to the Bank; and
(c) have regard to those submissions.
(2) Failure to comply with subsection (1) does not affect the validity of any Order in Council under section 81(1).
(3) Any action taken by the Bank before the coming into force of the Reserve Bank of New Zealand Amendment Act 1995 that would, if this section had then been in force, have constituted action taken under this section, shall be treated as having been taken under this section.
Section 81A: inserted, on 24 March 1995, by section 7 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
(1) Every disclosure statement that a registered bank is required to publish under section 81 must be dated and signed,—
(a) in the case of a body corporate, by every director of the body corporate or by each director's agent authorised in writing to do so; and
(b) in the case of an overseas incorporated registered bank, by its New Zealand chief executive officer or that person's agent authorised in writing to do so.
(2) Every overseas incorporated registered bank must notify the Bank in writing of the name and address of its New Zealand chief executive officer and any subsequent changes to those details.
(3) If an overseas incorporated registered bank fails to comply with subsection (2), the Bank may, after giving the registered bank 14 days' notice in writing of its intention to do so, specify a particular employee of that registered bank to be its New Zealand chief executive officer for the purposes of this Act.
(4) If the Bank exercises the power conferred by subsection (3), it must give notice in writing to the registered bank as soon as practicable.
Section 82: substituted, on 21 August 2003, by section 22 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Where the Bank considers that a disclosure statement published by a registered bank—
(a) contains information that is false or misleading; or
(b) does not contain information which it is required to contain, whether or not the information contained in the disclosure statement is false or misleading as a result of the omission,—
the Bank may, by notice in writing to the registered bank, require the registered bank to—
(c) publish a disclosure statement that does not contain false or misleading information; or
(d) publish a disclosure statement that contains the information that was previously omitted; or
(e) take such other corrective action as the Bank may specify in the notice.
Section 83(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
[Repealed]
Heading: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 84: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 85: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 86: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 87: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
[Repealed]
Section 88: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Heading: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
(1) A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to publish information that it is required to publish in a disclosure statement under section 81.
(2) The penalty for an offence against this section is set out in section 156AC.
Section 89: substituted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If a disclosure statement that includes information that is false or misleading is published by a registered bank, all of the following persons commit an offence:
(a) the registered bank; and
(b) every director of the registered bank who signed the disclosure statement or on whose behalf the disclosure statement was signed; and
(c) in the case of an overseas incorporated registered bank, the New Zealand chief executive officer who signed the disclosure statement or on whose behalf the disclosure statement was signed.
(2) It is a defence to a prosecution for an offence against this section if—
(a) the defendant proves that the information was immaterial; or
(b) in the case of a defendant who is director of a registered bank or a New Zealand chief executive officer of an overseas incorporated registered bank, that defendant proves that he or she had reasonable grounds to believe, and believed, up to the publication of the disclosure statement, that the information was true.
(3) The penalty for an offence against this section is set out in section 156AC.
Section 89A: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to make its most recent disclosure statement publicly available in the manner set out in an Order in Council made under section 81.
(2) The penalty for an offence against this section is set out in section 156AB.
Section 89B: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A registered bank commits an offence if the registered bank fails to comply with a requirement of the Bank under section 83 for the registered bank to—
(a) publish a disclosure statement that does not contain false or misleading information; or
(b) publish a disclosure statement that contains information that was previously omitted; or
(c) take the corrective action specified by the Bank in a notice given under that section.
(2) The penalty for an offence against this section is set out in section 156AC.
Section 89C: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Subject to section 91, the following persons are liable to pay compensation to any person who sustains a loss by reason of subscribing for any debt security issued by a registered bank in reliance on false or misleading information contained in a disclosure statement, namely,—
(a) the registered bank; and
(b) every person holding office as a director of the registered bank at the time of the publication of the disclosure statement; and
(c) the New Zealand chief executive officer of an overseas incorporated registered bank at the time of the publication of the disclosure statement.
Section 90: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Section 90(a): substituted, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 90(b): substituted, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 90(c): added, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
A person is not liable under section 90 in relation to false or misleading information that is included in a disclosure statement if that person proves that—
(a) the disclosure statement was published without his or her knowledge or consent and, on becoming aware of the publication, he or she forthwith gave notice to the Bank that it was published without his or her knowledge or consent and, as soon as practicable, also gave reasonable public notice that it was published without his or her knowledge or consent; or
(b) after publication of the disclosure statement and before the securities were subscribed for, he or she, on becoming aware of the false or misleading information, withdrew his or her consent to the disclosure statement, forthwith gave notice to the Bank of the withdrawal of that consent and, as soon as practicable, also gave reasonable public notice of the withdrawal of that consent; or
(c) he or she had reasonable grounds to believe and did, up to the time of the subscription for the securities, believe that the statement was true.
Section 91: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Nothing in sections 89 to 91 limits or affects the Fair Trading Act 1986.
Section 92: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
(1) For the purposes of this Part, the Bank may, by notice in writing to any registered bank or by notice in the Gazette that applies to any specified class of registered banks, require the registered bank or, as the case may be, registered banks of that class to supply to the Bank any information, data, or forecasts about—
(a) the corporate matters of the registered bank:
(b) the financial matters of the registered bank:
(c) the prudential matters of the registered bank:
(d) any other matters relating to the business, operation, or management of the registered bank.
(2) A registered bank may be required to supply information, data, or forecasts—
(a) relating to business carried on by the registered bank in New Zealand or elsewhere (whether that business is carried on as principal, broker, agent, or intermediary); and
(b) in a consolidated form (if specified by the Bank).
(3) A notice may specify—
(a) the periods for which, and the form in which, the information, data, or forecasts must be supplied; and
(b) the time by which, and the place in New Zealand at which, the information, data, or forecasts must be supplied.
(4) The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
(5) A registered bank commits an offence if, without lawful justification or excuse, the registered bank—
(a) fails to comply in any respect with any requirements of the Bank under this section; or
(b) supplies information or data that the registered bank is required to supply under this section that is false or misleading in a material particular.
(6) The penalty for an offence against this section is set out in section 156AB.
Section 93: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
The Bank may, by notice under section 93, require a registered bank or a specified class of registered banks to supply, without limitation, information, data, or forecasts in relation to—
(a) any associated person of a registered bank; or
(b) a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding company of a registered bank has a substantial interest.
Section 93A: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person referred to in section 93A(a) or (b) must, on being required by a registered bank to do so, supply the registered bank with information, data, or forecasts relating to that person in order to enable the registered bank to comply with a notice under section 93.
(2) A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
(3) The penalty for an offence against this section is set out in section 156AB.
Section 93B: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) If the Bank has reasonable grounds to believe that a person has information, data, or forecasts that the Bank could require a registered bank or a class of registered banks to supply under section 93, it may, by notice in writing to that person, require that person to supply the information, data, or forecasts to the Bank.
(2) A notice may specify—
(a) the periods for which, and the form in which, the information, data, or forecasts must be supplied; and
(b) the time by which, and the place in New Zealand at which, the information, data, or forecasts must be supplied.
(3) The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
(4) A person commits an offence if, without lawful justification or excuse, the person—
(a) fails to comply with any requirements of the Bank under this section; or
(b) supplies information or data that the person is required to supply under this section that is false or misleading in a material particular.
(5) The penalty for an offence against this section is set out in section 156AB.
Section 93C: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank may, by notice in writing, require a registered bank or other person to obtain an audit, by an auditor approved by the Bank, of any information, data, or forecasts that the registered bank or other person, as the case may be, is required to supply under section 93 or section 93C.
(2) A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
(3) The penalty for an offence against this section is set out in section 156AA.
Section 94: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank may, by notice in writing to a registered bank, require that registered bank to supply the Bank with a report or series of reports, prepared by a person approved by the Bank, on—
(a) the corporate matters of the registered bank:
(b) the financial matters of the registered bank:
(c) the prudential matters of the registered bank:
(d) any other matters relating to the business, operation, or management of the registered bank:
(e) any of the matters referred to in paragraphs (a) to (d) in relation to—
(i) any associated person of the registered bank:
(ii) a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding company of the registered bank has a substantial interest.
(2) A person referred to in subsection (1)(e)(i) or (e)(ii) must, if required to do so by a registered bank, supply information relating to that person in order to enable the registered bank to comply with a notice under this section.
(3) A person commits an offence if, without lawful justification or excuse, the person fails to comply with this section.
(4) The penalty for an offence against this section is set out in section 156AC.
Section 95: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank may, by notice in writing to a registered bank, require that the report or series of reports, as the case may be, that has been prepared under section 95 in relation to the registered bank be published by that registered bank in the form specified in the notice.
(2) A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to comply with this section.
(3) The penalty for an offence against this section is set out in section 156AC.
Section 95A: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Every person who holds, or at any time has held, office as required by any enactment, as an auditor of a registered bank or an associated person of a registered bank, shall disclose to the Bank information relating to the affairs of that registered bank or associated person obtained in the course of holding that office if, in the opinion of that person,—
(a) the registered bank or associated person is insolvent or is likely to become insolvent or is in serious financial difficulties; and
(b) the disclosure of that information is likely to assist, or be relevant to, the exercise by the Bank of its powers under this Part.
Compare: 1964 No 134 s 38M(1); 1986 No 131 s 10; 1989 No 11 s 13
Section 96: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 96(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Every auditor shall, before disclosing any information to the Bank under section 96, take reasonable steps to inform the registered bank or associated person of the intention to disclose the information and the nature of the information.
Compare: 1964 No 134 s 38M(5); 1986 No 131 s 10
Section 97 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 97: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) No civil, criminal, or disciplinary proceedings shall lie against any auditor arising from the disclosure in good faith of information to the Bank pursuant to section 96.
(2) No tribunal, body, or authority, having jurisdiction in respect of the professional conduct of any auditor shall make any order against, or do any act in relation to, that person in respect of such disclosure.
(3) No information received by the Bank pursuant to section 96 shall be admissible in evidence in any proceedings against the auditor concerned.
(4) Nothing in subsection (3) of this section shall limit the admissibility of any information obtained in any other way.
Compare: 1964 No 134 s 38M(2); 1986 No 131 s 10; 1989 No 11 s 15
Heading: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies to—
(a) a registered bank; and
(b) any member of the registered bank's banking group (being a member that has a physical presence in New Zealand).
(2) For the purpose of the exercise by a home country supervisor of its supervisory functions, the Bank may authorise a home country supervisor to—
(a) conduct an inspection of any person to whom this section applies; or
(b) require any person to whom this section applies to supply to the home country supervisor any information, data, or forecasts relating to that person.
(3) The information, data, or forecasts that a home country supervisor may be authorised to obtain may include, without limitation, information about the affairs of a particular customer or client of a person to whom this section applies.
(4) The Bank may grant an authorisation only if it is satisfied that sufficient provision exists to protect the confidentiality of the information, data, or forecasts obtained or required by the home country supervisor.
(5) An authorisation may be—
(a) granted for the period or periods that the Bank thinks fit; and
(b) varied, revoked, or amended by the Bank at any time.
(6) The Bank must give notice in writing to a person to whom this section applies if the Bank—
(a) grants an authorisation in relation to that person; or
(b) varies, revokes, or amends that authorisation.
(7) This section has effect despite anything to the contrary in any other enactment or rule of law.
(8) For the purposes of this section, a member of a registered bank's banking group has a physical presence in New Zealand if that member—
(a) has an office in New Zealand; or
(b) has an agent in New Zealand.
Section 98A: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A person to whom section 98A applies must, on receipt of a notice from the Bank under that section, comply with that notice by, as the case may be,—
(a) permitting the home country supervisor to conduct an inspection of that person; or
(b) supplying the home country supervisor with the required information, data, or forecasts within the time, and at the place, specified in the notice.
(2) A person commits an offence if, without lawful justification or excuse, the person—
(a) fails to comply in any respect with any requirements notified by the Bank under this section; or
(b) supplies any information or data that the person is required to supply under this section that is false or misleading in a material particular.
(3) The penalty for an offence against this section is set out in section 156AA.
Section 98B: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies if the Bank has reasonable cause to believe—
(a) that any information or data published in a disclosure statement by a registered bank under section 81 or section 83 is false or misleading in a material particular; or
(b) that a registered bank has failed to publish information or data that it is required to publish in a disclosure statement under section 81 or section 83; or
(c) that any information or data supplied to the Bank by a registered bank under section 93 is false or misleading in a material particular; or
(d) that any information or data supplied by a person to a registered bank under section 93B or to the Bank under section 93C, as the case may be, is false or misleading in a material particular; or
(e) that a registered bank or a person, as the case may be, has failed to comply with any requirement to supply information, data, or forecasts under section 93 or section 93B or section 93C; or
(f) that a registered bank has failed to comply with section 95.
(2) If this section applies, the Bank may,—
(a) by notice in writing to the registered bank or person, require that registered bank or person to supply to the Bank, within the time specified in the notice, the information or data specified in the notice; or
(b) appoint, in writing, any suitably qualified person to enter and search any premises and inspect, remove, and take copies of any documents in the possession, custody, or control of any person and, if necessary, require the reproduction in usable form of any information recorded or stored in those documents.
(3) A person commits an offence if, without lawful justification or excuse, the person hinders, obstructs, or delays, in the conduct of an inspection under this section, any person duly authorised to make that inspection.
(4) A registered bank or person commits an offence if, without lawful justification or excuse, the registered bank or person—
(a) fails to comply with any requirement of the Bank under subsection (2)(a); or
(b) supplies any information or data that is required to be supplied under subsection (2)(a) that is false or misleading in a material particular.
(5) The penalty for an offence against this section is set out,—
(a) in the case of an offence against subsection (3), in section 156AB; and
(b) in the case of an offence against subsection (4), in section 156AC.
Section 99: substituted, on 21 August 2003, by section 27 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) No person appointed pursuant to section 99(2)(b) shall enter and search any premises, or inspect, remove, or take copies of any documents, or extracts from documents, in the possession of, or under the control of, any person, or require the reproduction in usable form of any information recorded or stored in any documents, unless—
(a) the occupier of the premises, or the person who has possession of the documents, agrees; or
(b) that person obtains a warrant under section 106.
(2) Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106 shall, on first entering those premises, and, if requested, at any subsequent time, produce—
(a) evidence of that person's authority to enter the premises; and
(b) evidence of that person's identity.
Compare: 1964 No 134 s 38N(2), (7); 1986 No 131 s 10; 1989 No 11 s 18
Section 100(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Where the Bank is satisfied that it is necessary or desirable for the purpose of determining whether or not to exercise the powers conferred under section 113 or section 117 that an investigation of the affairs of any registered bank or associated person of a registered bank should be carried out, the Bank may appoint, in writing, any person to carry out an investigation of the affairs of that registered bank or associated person of that registered bank.
Compare: 1964 No 134 s 38O(1); 1986 No 131 s 10; 1989 No 11 s 19
Section 101: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Any person appointed under section 101 may, for the purposes of carrying out an investigation of the affairs of a registered bank or associated person of a registered bank,—
(a) by notice in writing, require that registered bank or associated person, or any officer or employee of that registered bank or associated person, or any other person, to—
(i) supply any information or data relating to the business, operation, and management of the registered bank or associated person:
(ii) produce for inspection any documents of, or relating to, the business, operation, and management of that registered bank or associated person in the custody, or under the control, of that registered bank or associated person, officer, employee, or person:
(iii) where necessary, reproduce in usable form any information recorded or stored in such documents:
(b) take copies of any documents produced for inspection under paragraph (a):
(c) require any officer or employee of that registered bank or associated person, or any other person, to answer any question relating to the business, operation, and management of that registered bank or associated person.
(1A) Any questioning under subsection (1)(c) may be carried out by any person appointed under section 101, or a barrister or solicitor acting on behalf of that person, who may require the person who is subject to the questioning to take an oath or make an affirmation.
(2) Subject to section 104, any person appointed under section 101 may, for the purposes of carrying out an investigation of the affairs of the registered bank or associated person, at any time,—
(a) enter and search any premises:
(b) inspect, remove, and take copies of any documents, or extracts from documents, relating to the business, operation, and management of that registered bank or associated person in the possession, or under the control, of any person:
(c) if necessary, require any person to reproduce in usable form any information recorded or stored in those documents.
Compare: 1964 No 134 s 38O(2), (4); 1986 No 131 s 10; 1989 No 11 s 21
Section 102(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(a)(i): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(a)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(c): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Every person commits an offence against this Act who, without lawful justification or excuse,—
(a) hinders, obstructs, or delays any person appointed to carry out an investigation under section 101 in carrying out that investigation; or
(b) refuses to answer any question put to him or her under section 102; or
(c) supplies any information, or provides an answer to any question, required to be supplied or provided pursuant to section 102 which is false or misleading in a material particular.
(2) Every registered bank or associated person of the registered bank commits an offence against this Act if, without lawful justification or excuse,—
(a) it fails to comply with any requirement of a person appointed to carry out an investigation under section 101; or
(b) it supplies any information or data, or provides an answer to any question, required to be supplied or provided pursuant to section 102(1) which is false or misleading in a material particular.
(3) The penalty for an offence against this section is set out in section 156AC.
Compare: 1964 No 134 s 38O(11), (12), (13); 1986 No 131 s 10; 1989 No 11 s 20
Section 103(1)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 103(1)(c): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 103(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 103(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 103(3): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Any person who exercises any powers conferred by section 102(1) shall, if requested, produce the instrument of that person's appointment under section 101.
(2) No person who exercises any powers conferred by section 102(2) shall enter and search any premises, or inspect, remove, and take copies of any documents or extracts from documents, or require the reproduction in usable form of any information recorded or stored in documents, unless—
(a) the occupier of the premises, or the person who has possession of the documents, agrees; or
(b) that person obtains a warrant under section 106.
(3) Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106 shall, on first entering those premises and, if requested, at any subsequent time, produce—
(a) evidence of that person's authority to enter the premises; and
(b) evidence of that person's identity.
Compare: 1964 No 134 s 38O(3), (5), (9); 1986 No 131 s 10; 1989 No 11 s 22
(1) This section applies to—
(a) information, data, and forecasts supplied or disclosed to, or obtained by,—
(i) the Bank:
(ii) a person appointed under section 99(2)(b), section 101, or section 119—
under, or for the purposes of, or in connection with the exercise of powers conferred by, this Part:
(b) information and data derived from or based upon information, data, and forecasts referred to in paragraph (a):
(c) information relating to the exercise, or possible exercise, of the powers conferred by this Part.
(2) Information, data, and forecasts to which this section applies shall not be published or disclosed by the Bank, any officer or employee of the Bank, or a person appointed under section 99(2)(b), section 101, or section 119, except—
(a) with the consent of the person to whom the information relates:
(b) to the extent that the information is available to the public under any Act, other than the Official Information Act 1982, or is otherwise publicly available information:
(c) in statistical or summary form arranged in such a manner as to prevent any information published or disclosed from being identified by any person as relating to any particular person:
(d) for the purposes of, or in connection with, the exercise of powers conferred by this Part:
(e) in connection with any proceedings for an offence against this Act:
(f) to any central bank, authority, or body in any other country which exercises functions corresponding to or similar to those conferred on the Bank under this Part for the purposes of the exercise by that central bank, authority, or body of those functions:
(g) to any person whom the Bank is satisfied has a proper interest in receiving such information.
(3) No information, data, or forecasts shall be published or disclosed pursuant to paragraph (f) or paragraph (g) of subsection (2) unless the Bank is satisfied that satisfactory provision exists to protect the confidentiality of the information, data, or forecasts published or disclosed.
(4) No officer or employee of the Bank and no person appointed under section 99(2)(b), section 101, or section 119 shall use any information, data, or forecasts to which this section applies for a purpose not connected with the purpose for which such information, data, or forecasts was, or were, supplied, disclosed, or obtained.
(5) No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pursuant to subsection (2)(d) shall publish, disclose, or use such information, data, or forecasts except—
(a) for the purposes of, or in connection with the exercise of powers conferred by, this Part; and
(b) in accordance with such conditions as may be specified by the Bank.
(6) No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pursuant to subsection (2)(a) or subsection (2)(g), shall publish, disclose, or use such information, data, or forecasts unless the publication, disclosure, or use is—
(a) authorised by the Bank; or
(b) necessary or desirable in connection with the exercise of any function or power conferred by any enactment.
(7) A person referred to in subsection (7A) commits an offence if the person contravenes this section.
(7A) The persons are—
(a) any officer or employee of the Bank; or
(b) a person appointed under section 99(2)(b), section 101, or section 119.
(7B) The penalty for an offence against this section is set out in section 156AA.
(8) Nothing in the Official Information Act 1982 or any other Act, other than this Act, applies to information, data, and forecasts to which this section applies whether or not such information, data, and forecasts has or have been published or disclosed to any person pursuant to this section.
Compare: 1964 No 134 s 38P; 1986 No 131 s 10; 1989 No 11 s 23
Section 105(1)(a)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(4): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(7): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(7A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(7B): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A Judge of the High Court who is satisfied, on application in writing made on oath, that there are reasonable grounds for believing—
(aaa) that any information or data published in a disclosure statement by a registered bank under section 81 or section 83 is false or misleading in a material particular; or
(aa) that a registered bank has failed to publish information that it is required to publish in a disclosure statement under section 81 or section 83; or
(a) that any information or data supplied to the Bank by a registered bank pursuant to section 93 is false or misleading in a material particular; or
(b) that a registered bank has failed to comply with any requirement to supply information, data, or forecasts pursuant to section 93; or
(ba) that any information or data supplied by a person to a registered bank under section 93B or to the Bank under section 93C, as the case may be, is false or misleading in a material particular; or
(bb) that a person has failed to comply with any requirement to supply information, data, or forecasts to a registered bank under section 93B, or to the Bank under section 93C as the case may be; or
(c) that a registered bank has failed to comply with section 95—
may issue a warrant, in terms of section 107, to a person appointed pursuant to section 99(2)(b).
(2) A Judge of the High Court who is satisfied, on application in writing made on oath, that there are reasonable grounds for believing that it is necessary for the purpose of determining whether to exercise the powers conferred under section 113 or section 117 that an investigation of the affairs of a registered bank should be carried out, may issue a warrant, in terms of section 107, to a person appointed under section 101.
(3) A warrant issued under subsection (1) must identify the paragraph in that subsection under which it has been issued.
Compare: 1964 No 134 ss 38N(3), (5), 38O(6); 1986 No 131 s 10; 1989 No 11 s 24
Section 106(1): amended, on 21 August 2003, by section 28(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(aaa): inserted, on 21 August 2003, by section 28(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(aa): inserted, on 21 August 2003, by section 28(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(ba): inserted, on 21 August 2003, by section 28(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(bb): inserted, on 21 August 2003, by section 28(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(2): amended, on 21 August 2003, by section 28(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(3): substituted, on 21 August 2003, by section 28(5) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Every warrant issued under section 106 authorises the person named in it, at any time and, if necessary, by force, to—
(a) enter and search the premises named in it:
(b) inspect, remove, and take copies of documents or extracts from documents relating to the business, operation and management of the registered bank in the possession, or under the control, of any person:
(c) where necessary, require any information recorded or stored in those documents to be reproduced in usable form.
(2) The warrant shall continue in force for a period of 1 month or until the purpose for which it was granted has been satisfied, whichever is the lesser.
(3) Every person named in the warrant shall, as soon as practicable after removing any documents or extracts from documents from any premises, supply a copy of the documents or extracts to the person from whom the documents or extracts were removed.
Compare: 1964 No 134 ss 38N(4), (6), (8), 38O(7), (8), (10)
(1) Where any person commences any proceedings in any court in respect of the exercise of any powers conferred by section 99 or section 101 or section 102, until a final decision in relation to those proceedings is given, the powers may be, or may continue to be, exercised as if no such proceedings had been commenced, and no person shall be excused from fulfilling any obligation under those sections by reason of those proceedings.
(2) This section shall apply notwithstanding the provisions of any other Act or any rule of law.
Compare: 1964 No 134 ss 38N(11), 38O(14); 1986 No 131 s 10; 1989 No 11 s 26
In any case where it is declared in a final decision given in any proceedings in respect of the exercise of powers conferred by section 99 that the exercise of any powers conferred by that section is unlawful, to the extent to which the exercise of those powers is declared unlawful,—
(a) the Bank shall ensure that forthwith after the decision of the court is given—
(i) any information and data supplied by the registered bank pursuant to subsection (2)(a) of that section is destroyed:
(ii) any documents or extracts from documents obtained pursuant to an inspection made under subsection (2)(b) of that section are returned to the person previously having possession of those documents or previously having them under his or her control and any copies of such documents or extracts are destroyed:
(iii) any information derived from or based upon any such information and data or documents or extracts is destroyed:
(b) no information and data supplied by the registered bank pursuant to subsection (2)(a) of that section, and no documents or extracts from documents obtained pursuant to an inspection made under subsection (2)(b) of that section, shall be—
(i) admissible in evidence in any proceedings:
(ii) used in connection with the exercise of any power conferred by section 113 or section 117.
Compare: 1964 No 134 s 38N(12); 1986 No 131 s 10; 1989 No 11 s 27
Section 109(a)(i): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 109(a)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 109(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 109(b)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
In any case where it is declared in a final decision given in any proceedings in respect of the exercise of powers conferred by section 101 or section 102 that the exercise of any powers conferred by those sections is unlawful, to the extent to which the exercise of those powers is declared unlawful,—
(a) the Bank shall ensure that forthwith after the decision of the court is given—
(i) any information or data obtained pursuant to section 102(1)(a) is destroyed:
(ii) any documents produced for inspection pursuant to section 102(1)(a) are returned to the person previously having possession of the documents or previously having the documents under his or her control and any copies of such documents or extracts from documents are destroyed:
(iii) any documents or extracts from documents obtained pursuant to an inspection made under section 102(2) are returned to the person previously having possession of those documents or previously having them under his or her control and any copies of such documents or extracts from documents are destroyed:
(iv) any information derived from or based upon any such information, documents, or extracts is destroyed:
(b) no information or data obtained or documents produced for inspection pursuant to section 102(1)(a) and no documents or extracts from documents obtained pursuant to an inspection made under section 102(2) shall be—
(i) admissible in evidence in any proceedings:
(ii) used in connection with the exercise of any power conferred by section 113 or section 117.
Compare: 1964 No 134 s 38O(15); 1986 No 131 s 10; 1989 No 11 s 28
Section 110(b)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Heading: substituted, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
[Repealed]
Section 111: repealed, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
[Repealed]
Section 112: repealed, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank may give a registered bank or an associated person of a registered bank a direction, in writing, if it has reasonable grounds to believe that—
(a) the registered bank or associated person is insolvent or is likely to become insolvent; or
(b) the registered bank or associated person is about to suspend payment or is unable to meet its obligations as and when they fall due; or
(c) the affairs of the registered bank or associated person are being conducted in a manner prejudicial to the soundness of the financial system; or
(d) the circumstances of the registered bank or associated person are such as to be prejudicial to the soundness of the financial system; or
(e) the business of the registered bank has not been, or is not being, conducted in a prudent manner; or
(f) any of the following persons has failed to comply with any requirement imposed by or under this Act or regulations made under this Act:
(i) the registered bank:
(ii) a director of the registered bank:
(iii) in the case of an overseas incorporated registered bank, its New Zealand chief executive officer; or
(g) any of the following persons has been convicted of an offence against this Act:
(i) the registered bank:
(ii) a director of the registered bank:
(iii) in the case of an overseas incorporated registered bank, its New Zealand chief executive officer; or
(h) the registered bank has failed to comply with a condition of its registration.
(2) The Bank must obtain the consent of the Minister before giving a direction under this section.
(3) A direction given under this section must state the grounds on which it is given.
(4) The Bank may, with the consent of the Minister,—
(a) amend or modify a direction; or
(b) replace a direction with another direction; or
(c) revoke a direction.
(5) To avoid doubt, the Bank may exercise the power conferred by subsection (1) by giving a direction to a registered bank in respect of an associated person of that registered bank, and vice versa.
Section 113: substituted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
A direction given under section 113 may require a registered bank or an associated person of a registered bank to—
(a) consult with the Bank immediately, and from time to time, about the circumstances of the registered bank or of an associated person of the registered bank and the methods of resolving any difficulties facing the registered bank or the associated person; or
(b) carry on business, or any part of its business, in accordance with the direction; or
(c) cease to carry on its business, or any part of its business, in accordance with the direction; or
(d) ensure that any officer or employee of the registered bank or associated person ceases to take part in the management or conduct of its business except with the permission of the Bank and so far as that permission extends; or
(e) remove or replace any of the directors of an associated person of the registered bank; or
(f) remove or replace its auditor or appoint an auditor approved by the Bank; or
(g) take the action that is specified in the direction to address a breach of any condition of its registration; or
(h) take the action that is specified in the direction to address any circumstances of financial difficulties; or
(i) take any other action that may be specified in the direction.
Section 113A: inserted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) This section applies if the Bank has reasonable grounds to believe that—
(a) any of the circumstances referred to in section 113(1) exists; and
(b) it is necessary to remove, replace, or appoint a director of a registered bank or of an associated person of a registered bank.
(2) If this section applies, the Bank may—
(a) remove or replace a director of any registered bank or of an associated person of any registered bank; or
(b) appoint any person as a director of any registered bank or of an associated person of any registered bank.
(3) The Bank must—
(a) obtain the consent of the Minister before exercising the power conferred by subsection (2); and
(b) exercise that power by giving notice in writing to—
(i) the director or the person concerned; and
(ii) if applicable, the Registrar of Companies.
(4) A notice given under subsection (3)(b)(ii) is sufficient compliance with section 159 of the Companies Act 1993 as long as the notice is accompanied by the form of consent and certificate required under section 152 of that Act.
(5) This section has effect despite any enactment, rule of law, or the terms of the constitution of, or the instrument or contract creating, a registered bank or an associated person of a registered bank.
Section 113B: inserted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Every person commits an offence against this Act who, being a registered bank or associated person, without lawful justification or excuse, contravenes, or fails to comply with, a direction under section 113.
(2) Every person commits an offence against this Act who, being an officer or employee of a registered bank or of an associated person, without lawful justification or excuse, obstructs, hinders or prevents that registered bank or associated person giving effect to any direction given under section 113.
(3) The penalty for an offence against this section is set out in section 156AC.
Compare: 1964 No 134 s 38Q(11), (12); 1986 No 134 s 10; 1989 No 11 s 35
Section 114(3): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) Subject to subsections (2) and (3), every person commits an offence against this Act who discloses that a direction has been given under section 113 or that a notice has been given under section 113B.
(2) Nothing in subsection (1) applies to the disclosure or publication of the fact that a direction or notice has been given where the disclosure or publication is made—
(a) to any professional or financial adviser of the registered bank or associated person to which the direction or notice relates:
(b) with the written consent of the Bank, for the purposes of the sale or other disposition, or the possible sale or other disposition, of the whole or any part of the capital, or business undertaking, of the registered bank or associated person:
(c) by the Bank or with the written consent of the Bank,—
(i) to the public; or
(ii) to any person who has a proper interest in knowing that the direction or notice has been given.
(3) Nothing in subsection (1) applies to the disclosure or publication of the fact that a direction has been given requiring the actions set out in section 113A(d) or section 113A(e) or section 113A(f) for the purpose of giving effect to that direction.
(4) The penalty for an offence against this section is set out in section 156AA.
Compare: 1964 No 134 s 38Q(14), (15); 1986 No 131 s 10; 1989 No 11 s 36
Section 115 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(2)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(2)(c)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(3): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(4): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) A direction given under section 113 is taken to have been given on delivery to the head office, registered office, principal place of business in New Zealand, or address for service of the registered bank or associated person of the registered bank.
(2) If the Bank has reasonable grounds to believe that 1 or more of the circumstances listed in section 113(1) exist, it may, with the consent of the Minister, by notice in writing to the parties, approve any sale or other disposition of the whole or part of the capital or business undertaking of the registered bank or associated person of the registered bank specified in the notice.
(3) If the Bank grants an approval under subsection (2), the provisions of any enactment requiring any consent, licence, permission, or clearance or other authority do not apply as a condition of the legality or validity of the sale or other disposition.
(4) For the purposes of this section, address for service, in relation to a registered bank, means the address for service specified in a disclosure statement published in accordance with section 81.
Section 116: substituted, on 21 August 2003, by section 31 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank,—
(a) declare that—
(i) any registered bank:
(ii) any associated person of a registered bank—
is subject to statutory management; and
(b) appoint 1 or more persons as statutory manager or statutory managers of that registered bank or associated person for a specified period.
(1A) If any question arises as to whether, on the date on which a statutory manager was appointed, an act was done or a transaction was entered into or effected before or after the appointment, that act or transaction must, in the absence of proof to the contrary, be treated as having been done or entered into or effected, as the case may be, after the appointment of the statutory manager.
(2) If an Order in Council is made under subsection (1), every subsidiary of a registered bank declared to be subject to statutory management, except any subsidiary declared to be a subsidiary to which the order does not apply, is subject to statutory management and the appointment of a statutory manager for the specified period in respect of that registered bank also applies to those subsidiaries.
(2A) If a registered bank acquires a subsidiary after it has been declared to be subject to statutory management under subsection (1), that subsidiary is not subject to statutory management unless a further Order in Council is made declaring that subsidiary to be subject to statutory management.
(3) Where a registered bank or an associated person of a registered bank that is declared to be subject to statutory management or a subsidiary of a registered bank that becomes subject to statutory management under subsection (2), is incorporated outside New Zealand or is an unincorporated body having its head office or principal place of business outside New Zealand, the provisions of this Part relating to statutory management shall apply to the property, rights, assets and liabilities relating to its New Zealand business.
(4) Every Order in Council made under subsection (1) must specify the date on which, and the time at which, the Order in Council comes into force.
(5) The date and time as specified must not be earlier than the date on which, and the time at which, the Order in Council is made.
(6) A person appointed under subsection (1)(b) has all the rights and powers conferred, and all the duties imposed, on a person appointed under section 101 and, without limitation, the following provisions apply, with any necessary modifications, as if that person were appointed under section 101:
(a) section 102 (which relates to powers to carry out an investigation of the affairs of a registered bank); and
(b) section 103 (which sets out offences in relation to investigations); and
(c) section 104 (which sets out the requirements that must be complied with by a person carrying out an investigation).
Compare: 1964 No 134 s 38R(2), (3); 1986 No 131 s 10; 1989 No 11 s 38
Section 117(1)(b): amended, on 21 August 2003, by section 32(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 117(1A): inserted, on 21 August 2003, by section 32(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 117(2): substituted, on 21 August 2003, by section 32(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 117(2A): inserted, on 21 August 2003, by section 32(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 117(4): added, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 117(5): added, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 117(6): added, on 21 August 2003, by section 32(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) The Bank must not make a recommendation under section 117 unless—
(a) it is satisfied on reasonable grounds that 1 or more of the circumstances listed in section 113(1)(a) to (e) exist; or