Reserve Bank of New Zealand Bill

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Hon Grant Robertson

Reserve Bank of New Zealand Bill

Government Bill

315—3

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

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