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 licensed 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.
Applicants should supply the following documentation in support of the application:
- the product disclosure information (under the Financial Markets Conduct Act 2013 (or, if relevant, the prospectus and investment statement issued under the Securities Act 1978));
- a copy of the trust deed or deed of participation;
- the most recent financial statements; and
- details of the NBDT’s establishment or 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 considers necessary 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 in writing of the Reserve Bank's decision.
2. Drafting of the exemption notice
If the application is successful, the Reserve Bank will draft an exemption notice giving effect to the exemption. The Parliamentary Counsel Office will draft any notice that exempts a class of licensed NBDTs. Applicants will have the opportunity to review the draft notice and any comments will be taken into account.
3. Notification in the New Zealand Gazette
The notice of the grant of the exemption is given in the Gazette, which is updated each Thursday. In most cases, the exemption does not come into force until the day it has been notified in the Gazette. The applicant will normally be expected to pay the costs associated with gazettal. These costs are higher where special gazettal (outside Thursdays) is needed.
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 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
Banks, NBDTs and Enforcement
Prudential Supervision Department
Reserve Bank of New Zealand
2 The Terrace
PO Box 2498
Telephone +64 4 472 2029
Fax +64 4 471 3995
Email: [email protected]