Under Section 70 of the Non-bank Deposit Takers Act 2013 (the NBDT Act) we have the power to exempt any licensed non-bank deposit taker (NBDT) class of licensed NBDT or trustee from any provision of the NBDT Act, except the requirement to be licensed.
Exemptions allow flexibility in applying the NBDT regulatory regime to specific NBDTs or classes of NBDTs, provided certain conditions are met.
We can only grant an exemption when we are satisfied that:
The presumption is that all entities that clearly fall within the definition of an NBDT will be subject to prudential requirements, and that exemptions—especially class exemptions—should be the exception, not the rule.
The NBDT Act permits us to place terms and conditions on an exemption as we see fit. This allows for alternative prudential requirements and mechanisms, and ensures the substance of the original obligation is maintained.
Therefore, in cases where an exemption from certain obligations is appropriate (for example, an exemption from capital, related party or liquidity requirements), the exemption is likely to be granted with alternative terms and conditions imposed. What this means is that all NBDTs could expect to meet some form of minimum capital, related party or liquidity standard, but the detailed requirements and exact form may differ according to the individual circumstances of each NBDT.