Reserve Bank of New Zealand Act 2021

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Reserve Bank of New Zealand Act 2021

Public Act		2021 No 31
Date of assent		16 August 2021
Commencement		see section 2

1	Title
2	Commencement
	Part 1 Preliminary provisions
3	Purposes
4	Overview
5	Interpretation
6	Transitional, savings, and related provisions
7	Act binds the Crown
	Part 2 Reserve Bank of New Zealand
	Subpart 1—Continuation of Reserve Bank of New Zealand
8	Continuation of Reserve Bank of New Zealand
9	Bank’s objectives
10	Bank’s functions
11	Minister may add functions on Bank’s request
12	Status of Bank
13	Core things Bank can do
14	Other things Bank can do
15	Acts must be for purpose of functions
	Subpart 2—Validity of acts
16	Acts in breach of statute are invalid
17	Some natural person acts protected
18	Limits on protection of natural person acts
19	Acts that are not in best interests of Bank
20	Dealings between Bank and other persons
21	Interpretation for sections 12 to 20
	Subpart 3—Minister’s role
22	Minister’s role
23	When Minister may delegate powers
	Subpart 4—Board of Bank and its members
	Role, membership, and accountability
24	Board’s role
25	Membership of board
26	Accountability of members to Minister
	Appointment, removal, and conditions of members
27	Method of appointment of members
28	Provisions that do not apply to Governor
29	Criteria for recommendations by Minister
30	Minister must consult other political parties
31	Qualifications of members
32	Requirements before appointment
33	Term of office of members
34	Former Governor may be appointed as member
35	Validity of members’ acts
36	Validity of appointments
37	Removal of members
38	Just cause for removal of members
39	Process for removal of members
40	No compensation for member’s loss of office
41	Resignation of members
42	Members ceasing to hold office
	Remuneration and expenses
43	Remuneration of members
44	Expenses of members
	Collective duties of board
45	Bank must act consistently with objectives, functions, statement of intent, and statement of performance expectations
46	Manner in which functions must be performed
47	Bank must operate in financially responsible manner
48	Subsidiaries and other interests
49	Board must have regard to financial policy remit when acting in relation to prudential strategic intentions and prudential standards
	Individual duties of members
50	Duty to comply with relevant legislation
51	Duty to act with honesty and integrity
52	Duty to act in good faith and not at expense of Bank’s interests
53	Duty to act with reasonable care, diligence, and skill
54	Duty not to disclose information
	Effect of non-compliance with duties
55	Accountability for collective board duties
56	Member’s liability for breach of collective duty
57	Accountability for individual duties
58	Member’s liability for breach of individual duty
59	Court actions requiring or restraining board or members
	Reliance on information and advice
60	When members may rely on certain information and advice
	Conflict of interest disclosure rules
61	When person is interested
62	Obligation to disclose interest
63	Who disclosure of interests must be made to
64	What must be disclosed
65	Consequences of being interested in matter
66	Consequences of failing to disclose interest
67	Permission to act despite being interested in matter
68	Permission must be disclosed in annual report
69	Bank may avoid certain acts done in breach of conflict of interest rules
70	What is fair value
71	Onus of proving fair value
72	Effect of avoidance on third parties
	When Governor may not act as member of board
73	When Governor may not act as member of board
	Delegation
74	Ability to delegate
75	Powers of delegate
76	Effect of delegation on Bank or board
77	Revocations of delegations
	Miscellaneous provisions relating to board
78	Vacancies in membership of board
79	Appointment of chairperson, etc, and board procedure
	Subpart 5—Monitor of Bank
80	Appointment and role of monitor
81	Minister must set expectations
	Subpart 6—Governor
82	Governor
83	Process requirements relating to Minister’s recommendation
84	Term of appointment of Governor
85	Terms and conditions of appointment of Governor
86	Extension of term of Governor
87	Qualifications of Governor
88	Appointment procedure for Governor
89	Validity of appointments
90	Removal of Governor from office
91	Board must advise Minister of just cause and may recommend removal
92	Just cause for removal of Governor
93	Process for removal of Governor
94	Resignation of Governor
95	When Governor ceases to hold office
96	Minister must make temporary appointment if office of Governor is vacant
	Subpart 7—Monetary policy committee
97	Monetary policy committee continues
98	Functions of MPC
99	Board must regularly review performance of MPC and members
100	Membership of MPC
	Charter for MPC
101	Charter for MPC
102	Content of charter
103	Replacement charter
104	Consultation about replacement charter
105	Publication of charter
	Code of conduct
106	Code of conduct
107	Content of code
108	Publication of code
	Other matters
109	Other matters
	Subpart 8—Subsidiaries
110	Acquisition of subsidiaries
111	General duty relating to subsidiaries
112	Duties relating to performance, remuneration of directors, and chief executives
113	Acquisition of shares or interests in companies, trusts, and partnerships, etc
114	Relationship with Companies Act 1993 and other Acts
	Part 3 Central bank functions
	Subpart 1—Bank to act as central bank
115	Bank to act as central bank
116	Central bank functions
	Subpart 2—Monetary policy
	Formulating monetary policy
117	Function to formulate monetary policy through MPC
118	MPC must formulate monetary policy in manner consistent with economic objectives and MPC remit
119	What MPC must have regard to in formulating monetary policy
	Implementing monetary policy
120	Function to implement monetary policy
121	Bank not required to implement monetary policy that is inconsistent with financial responsibility duties
	Remit for MPC
122	Remit for MPC
123	Contents of MPC remit
124	Other matters relating to MPC remit
	Order providing for different economic objective or objectives
125	Order providing for different economic objective or objectives
126	Minister must consider replacing or amending MPC remit
127	Period may be extended
128	Revocation of order at end of period
	Reports on monetary policy
129	Regular reports on monetary policy
130	Contents of reports on monetary policy
131	Longer-term report on formulation and implementation of monetary policy
132	Longer-term report must contain information required by charter
	Subpart 3—Foreign exchange
	Dealing in foreign exchange
133	Dealing in foreign exchange by Bank
134	Power of Minister to direct Bank to deal in foreign exchange within guidelines
135	Minister may defer publication and presentation to House of Representatives
136	Effect of directions on operational objectives
137	Effect of Bank’s notice on duty to give effect to operational objectives
138	Effect of directions on monetary policy
139	Effect of Bank’s notice on duty to comply with Minister’s direction
	Foreign exchange gains and losses
140	Foreign exchange gains and losses
	Foreign reserves management and co-ordination framework
141	Bank must hold and manage foreign reserves in accordance with framework
142	Purposes of framework
143	Minister and Bank must agree on framework
144	Form and publication of framework
145	Minister and Bank must ensure framework is in force
146	Minister must have regard to framework when issuing direction under section 134
147	Review of framework
148	Bank must defer publishing information relating to certain directions
	Subpart 4—Currency
149	Issue of currency by Bank
150	Power of Bank to call in currency
151	Effect of call-in notice
152	Legal tender: bank notes
153	Legal tender: coins
154	Defacing bank notes
155	Making or issuing of other bank notes or coins
156	Reproduction or imitation of currency
157	Court may order imitation currency and other things to be destroyed
158	Time for filing charging document
	Subpart 5—Regulating bank note handling machines
159	Interpretation in this subpart
160	Bank may issue standards for bank note handling machines
161	Procedure for issuing standards
162	Content of standards
163	Standards do not prevent return to Bank of unfit bank notes
164	Bank may require operator to test bank note handling machines and to report
165	Bank may require operator to cease operating machine until operator verifies compliance
166	Infringement offence to fail to comply with notice
167	Offence of intentionally or recklessly failing to comply with notice to cease operating machine
168	District Court may make orders about bank note handling machines
	Subpart 6—Financial stability reports
169	Purposes of financial stability report
170	Financial stability reports
	Part 4 Operation of Reserve Bank
	Independence of Bank
171	Safeguarding independence of Bank
	Whole of government directions
172	Directions to support whole of government approach
	Government directions to Bank
173	Bank must comply with directions given under statutory power of direction
174	Procedure for ministerial directions
175	When procedural requirements for directions do not apply
176	Review and expiry of all directions given to Bank
	Employees
177	Bank must be good employer
178	Meaning of good employer
179	Application of clauses 12 and 13 of Schedule 8 of Public Service Act 2020
	Protections from liability
180	Definitions for protections from liability
181	Protection from liability for Bank
182	Protection for certain persons
183	Protections from liabilities of Bank
184	Liability of member of board to Bank
185	Protections do not affect other actions
186	Indemnities in relation to act or omission
187	Insurance for liability
188	Breach of indemnity and insurance limits
189	Crown indemnities in relation to statutory management
190	Other provisions relating to Crown indemnities
	Dealings with third parties
191	Method of contracting
192	Attorneys
193	Address for service
	Review of Bank’s operations and performance
194	Review of Bank’s operations and performance
195	Bank must co-operate with review
	Power to request information from Bank
196	Power to request information about operations and performance
197	Power to request information about reporting and financial obligations
198	Power to request information about assessing capability and performance of State services
199	Good reasons for refusing to supply requested information
	Miscellaneous
200	Members, Governor, office holders, and employees are officials
201	Evidence
202	Policy advice
	Part 5 Financial and accountability matters
	Subpart 1—Financial policy remit
203	Financial policy remit
204	Contents of financial policy remit
205	Form, publication, and presentation of financial policy remit
206	Review of financial policy remit
207	Safeguarding independence of Bank
	Subpart 2—Direction relating to Bank’s minimum level of capital and financial risk management
208	Power of Minister to direct Bank relating to minimum level of capital and financial risk management
	Subpart 3—Funding agreements and annual dividend
	Funding agreements
209	Funding agreements
210	Contents of funding agreements
211	Funding agreements to be published and presented to House of Representatives
212	Expenditure where there is no current funding agreement
	Annual dividend
213	Determination of annual dividend
214	Bank must publish matters relating to annual dividend
	Subpart 4—Reporting obligations
215	Interpretation for subpart
	Planning: statement of intent
216	Purpose of statement of intent
217	Obligation to prepare statement of intent
218	Minister may require Bank to prepare new statement of intent at any time
219	Minister may grant extension of time for requirement to provide statement of intent
220	Content of statement of intent
221	Application and term of statement of intent
222	Ministerial involvement in statement of intent
223	Process for providing statement of intent to Minister
224	Amendments to final statement of intent by Bank
225	Process for amendments to statement of intent
226	Obligation to publish and present statement of intent
227	Obligation to publish and present amendments to statement of intent
	Planning: statement of performance expectations
228	Purpose of statement of performance expectations
229	Obligation to prepare statement of performance expectations
230	Content of statement of performance expectations
231	Exemption for certain outputs
232	Forecast statement of comprehensive revenue and expense
233	Ministerial involvement in statement of performance expectations
234	Process for providing statement of performance expectations to Minister
235	Amendments to final statement of performance expectations by Bank
236	Process for amendments to statement of performance expectations
237	Obligation to publish and present statement of performance expectations
238	Obligation to publish and present amendments to statement of performance expectations
	Reporting: annual report
239	Obligation to prepare, present, and publish annual report
240	Form and content of annual report
241	Bank must defer including information in annual report about certain directions
242	Disclosure of remuneration and of details of indemnities and insurance cover
243	Form and content of statement of performance
244	Annual financial statements
245	Information about each class of excluded expenditure
246	Statement of responsibility
247	Audit report
	Application of this subpart to Bank group
248	Application of this subpart to Bank group
249	Minister of Finance may require additional reporting
	Subpart 5—Other accountability statements and reports
	Financial risk management
250	Purposes of statement of financial risk management
251	Obligation to prepare statement of financial risk management
252	Minister and Bank must take reasonable steps to agree on annual dividend principles
	Statements of prudential policy
253	Purposes of statements of prudential policy
254	Obligation to prepare statements of prudential policy
	Assessment of regulatory impacts of policies
255	Assessment of regulatory impacts of policies
256	Content of assessment of proposed policy
257	Bank must publish report on assessment of regulatory impacts
	Subpart 6—Accounting records
258	Board must ensure that proper accounting records are kept
	Subpart 7—Miscellaneous
259	Minister of Finance instructions
260	Consultation with House of Representatives on reporting standards
	Part 6 Miscellaneous provisions
	Subpart 1—Information-gathering power
261	Interpretation for this subpart
	Bank’s information-gathering power
262	Bank may require relevant person to supply information for central banking and financial system oversight functions
263	Information about particular customer, client, or natural person not required
264	Person required to supply information has same privileges as witnesses in court
	Offences relating to information-gathering power
265	Infringement offence to fail to supply information
266	Offence of intentionally or recklessly failing to comply with notice to supply information
	Requirement that information be reviewed
267	Requirement that information be reviewed
268	Offence of failing to comply with review requirements
	Confidentiality
269	Publication or disclosure of information by Bank
270	Offence of unauthorised publication or disclosure
271	Conditions relating to publication or disclosure of information
272	Restrictions on further publication or disclosure of information
273	Offence of unauthorised publication, disclosure, or use
	Privacy Act 2020
274	Subpart does not limit Privacy Act 2020
	Subpart 2—Provisions relating to infringement offences
275	Proceedings for infringement offences
276	When infringement notice may be issued
277	Revocation of infringement notice before payment made
278	What infringement notice must contain
279	How infringement notice may be served
280	Payment of infringement fees
281	Reminder notices
	Subpart 3—Information sharing
282	Sharing of information with certain law enforcement or regulatory agencies
283	Conditions that may be imposed on providing information under this subpart
284	Restriction on publication, disclosure, or use
	Subpart 4—Council of Financial Regulators
285	Council of Financial Regulators
286	Function of council
287	Chairpersons of council
288	Members of council
	Subpart 5—General offences
289	Offences
290	Penalties for offences
	Subpart 6—Regulations
291	General regulations
292	Regulations relating to fees, charges, and costs
293	Regulated entities must pay levy to Bank
294	Levy regulations
295	Other provisions relating to levy regulations
296	Consultation about proposed levy regulations
	Subpart 7—Amendments to other legislation
297	Title of Reserve Bank of New Zealand Act 1989 changed
298	Section 1 amended (Short Title and commencement)
299	Other amendments to Reserve Bank of New Zealand Act 1989
300	Other legislation amended
	Schedule 1 Transitional, savings, and related provisions
	Schedule 2 Appointment of chairperson, etc, and board procedure
	Schedule 3 Remit and monetary policy committee
	Schedule 4 Amendments to other legislation
	Legislative history
	Administrative information

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