Trustees Executors Limited Industry Notice
The Reserve Bank is again reminding trustees of the importance of meeting their obligations under Part 5D of the Reserve Bank of New Zealand Act 1989. It does this after sending a warning to Trustees Executors Limited for not reporting to the Reserve Bank, as soon as practicable, a deposit takers material non-compliance with the independent director requirements in section 157L. This reporting is required by section 157ZF. The deposit taker concerned is Broadlands Finance Limited.
As the Reserve Bank has stated previously, trustees are the front line supervisors of the deposit taking sector and it is important that they bring matters to the attention of the Reserve Bank when a deposit taker is not complying with the law, and that they do this as promptly as possible. Otherwise the Reserve Bank may not be able to address matters of deposit taker non-compliance effectively.
Trustees Executors Limited has worked constructively with the Reserve Bank since the matter arose and has undertaken a review of its practices in light of what has happened.