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Exemption process

How to apply for an exemption

All applications must be made in writing and should follow the format outlined below.

Who is applying?

Provide the full name, address and corporate status of the applicant seeking the exemption.

For NBDTs that have a trustee, provide the full name and address of the appointed trustee company.

What is the nature of the business?

Describe the business being carried out by the applicant. It would be helpful to provide as much background of the deposit-taking activities, including details of the debt securities offered to the public, any financial services offered and the borrowing and lending arrangements.

What do you want an exemption from?

Specify the provisions of the Act and/or regulations from which an exemption is sought, and submit any terms and conditions on the exemption that the applicant considers are appropriate.

Why are you seeking an exemption?

Explain, for each provision of the Act and/or regulations from which an exemption is sought, why the exemption is needed and give full reasons that may justify an exemption. As the Reserve Bank must take into account the principles set out in the Act, applicants should outline how they believe that receiving an exemption would satisfy these principles.

This includes the need for applicants to demonstrate that it would be unduly onerous or burdensome to comply with the primary obligations under the Act or regulations.

What effects will there be on the applicant’s business?

Describe the effects on the applicant’s business, and the relative costs and benefits, of (a) having an exemption and (b) not having an exemption.

What effects will there be on existing and prospective depositors?

Describe how the applicant’s proposed exemption may affect existing and prospective depositors and any costs and benefits to them.

Supporting documentation

Applicants should supply the following documentation in support of the application:

  • the prospectus and investment statement;
  • a copy of the trust deed or deed of participation;
  • the most recent financial statements; and
  • details of incorporation.

In addition, applicants may include other relevant documents. These could include:

  • any other document relating to the offer of securities, financial services or lending and borrowing services that are relevant to the application;
  • a draft exemption notice; and
  • any relevant legal advice.

The Reserve Bank may also request further information that it deems necessary in order to assess the application.

What steps are involved?

1. Application considered by the Reserve Bank

Applications are considered by Reserve Bank staff. Applicants may be asked to provide further information at any stage of the consideration process.

Once a decision is reached, the Reserve Bank will inform the applicant of the Reserve Bank’s decision.

2. Notice drafted by Parliamentary Counsel Office

If the application is successful, the Reserve Bank will instruct the Parliamentary Counsel Office (PCO) to prepare an exemption notice giving effect to the exemption. PCO is a separate office of Parliament and is New Zealand’s law drafting office. PCO is responsible for drafting all legislation and delegated legislation, including exemption notices.

3. Notification in the New Zealand Gazette

The Reserve Bank must give notice of the exemption in the Gazette, which is published each Thursday. In most cases, the exemption does not come into force until the day it has been notified in the Gazette.

How long does it take?

It is expected that it would generally take three months from the time the Reserve Bank receives all relevant information relating to an application until a successful exemption is gazetted. However, this may be much longer if policy questions arise. Applicants should provide the Bank with all relevant information promptly, as the length of the assessment process will ultimately depend on the nature and quality of the application.

Please note that the three-month estimate includes time for referral to PCO for drafting the exemption notice and for notification in the New Zealand Gazette.

If the application is urgent, the applicant must provide a time frame within which a decision is required and any exemption granted taking effect. Reasons must be given for any request for urgent consideration.

How to contact us

Domestic Deposit Taking Oversight Team
Prudential Supervision Department 
Reserve Bank of New Zealand
2 The Terrace
PO Box 2498 
Wellington
New Zealand

Telephone +64 4 472 2029  
Fax +64 4 471 3995   
Email: NBDT.exemptions@rbnz.govt.nz