New Zealand Legislation: Regulations
Regulations are laws made under Acts
Add to web feed Reprint
as at 3 June 2011
(SR 2009/307)
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
This notice is administered by the Reserve Bank of New Zealand.
Pursuant to section 157G of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).
5 Exemption from requirement to have credit rating
6 Exemption from governance requirements
7 Exemption from risk management programme requirements
8 Exemption from capital ratio requirements
9 Exemption from related party exposures requirements
10 Exemption from liquidity requirements
11 Generic conditions of exemptions in clauses 5 to 10
12 Individual conditions of exemptions in clauses 5 to 10
Schedule
Payment facility providers to which this notice applies
This notice is the Deposit Takers (Payment Facility Providers) Exemption Notice 2009.
This notice comes into force on the day after the date of its notification in the Gazette.
This notice expires on the close of 1 September 2014.
(1) In this notice, unless the context otherwise requires,—
Act means the Reserve Bank of New Zealand Act 1989
advertisement has the same meaning as in section 2A of the Securities Act 1978
investment statement has the same meaning as in section 38C of the Securities Act 1978
payment facility provider means a person specified in the first column of the table in the Schedule
registered prospectus has the same meaning as in section 2(1) of the Securities Act 1978
security holder means a member of the public in New Zealand who has subscribed for specified securities
specified securities, in respect of a payment facility provider, means the securities referred to in the second column of the table in the Schedule opposite its name.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice, has the same meaning as in the Act.
A payment facility provider is exempted from section 157I of the Act.
Clause 5: substituted, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
A payment facility provider is exempted from section 157L of the Act.
Clause 6: substituted, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
A payment facility provider is exempted from section 157M of the Act.
Clause 7: substituted, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
(1) A payment facility provider is exempted from sections 157T and 157U of the Act.
(2) The trustee in respect of the debt securities of a payment facility provider is exempted from section 157T of the Act in respect of those securities.
Clause 8: added, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
(1) A payment facility provider is exempted from sections 157X and 157Y of the Act.
(2) The trustee in respect of the debt securities of a payment facility provider is exempted from section 157X of the Act in respect of those securities.
Clause 9: added, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
(1) A payment facility provider is exempted from sections 157ZA and 157ZB of the Act.
(2) The trustee in respect of the debt securities of a payment facility provider is exempted from section 157ZA of the Act in respect of those securities.
Clause 10: added, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
(1) The exemptions in clauses 5 to 10 are subject to the following conditions:
(a) the payment facility provider must not provide any financial services in New Zealand other than the specified securities; and
(b) the payment facility provider must not pay interest, or any consideration in the nature of interest, to security holders in respect of the specified securities; and
(c) the payment facility provider must not disclose, in any registered prospectus, investment statement, or advertisement relating to an offer of its specified securities, an assessment of its creditworthiness that is in substance a credit rating (whether called a rating, grading, scoring, ranking, or by any other name) issued by an agency that is not approved by the Bank under section 157J of the Act.
(2) The exemptions in clauses 5 to 10 are subject to a further condition that the payment facility provider must not allot any debt security on or after 1 February 2011 unless the subscriber has, before subscription, received written notification that—
(a) states that the payment facility provider is exempted, until 1 September 2014, from—
(i) the requirement in section 157I of the Act to have a credit rating; and
(ii) the governance requirements in section 157L of the Act; and
(iii) the risk management programme requirements in section 157M of the Act; and
(iv) the capital ratio requirements in sections 157T and 157U of the Act; and
(v) the related party exposures requirements in sections 157X and 157Y of the Act; and
(vi) the liquidity requirements in sections 157ZA and 157ZB of the Act; and
(b) accurately and clearly describes all risks associated with subscriptions for the specified securities.
Clause 11: added, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
(1) This clause applies to the following payment facility providers:
(a) Interpayment Services Limited:
(b) Travelex Card Services Limited.
(2) The exemptions in clauses 5 to 10 are subject to the further conditions that the payment facility provider—
(a) must maintain a trust account with a bank that is supervised and regulated by the Financial Services Authority (UK) (or any successor regulatory body); and
(b) must hold the net amount in that trust account on trust for security holders.
(3) In this clause, net amount means, in relation to specified securities issued by the payment facility provider and a particular day, an amount equal to the reported net balance of all specified securities outstanding on the previous day.
Clause 12: added, on 1 December 2010, by clause 4 of the Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010 (SR 2010/437).
Schedule |
| Name of payment facility provider | Specified securities | |
| Interpayment Services Limited, a company incorporated in England | Call debt securities (as defined in regulation 46(1) of the Securities Regulations 2009) in the form of pre-paid instruments issued by the company in New Zealand in favour of security holders | |
| Travelex Card Services Limited, a company incorporated in Hong Kong | Call debt securities (as defined in regulation 46(1) of the Securities Regulations 2009) in the form of pre-paid instruments issued by the company in New Zealand in favour of security holders |
Dated at Wellington this 12th day of October 2009.
Grant Spencer,
Deputy Governor.
Note: The following statement of reasons should be read in conjunction with the statement(s) of reasons appended to the:
Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2011
Deposit Takers (Payment Facility Providers) Exemption Amendment Notice 2010
This notice comes into force on the day after the date of its notification in the Gazette and expires on 1 September 2014. It exempts payment facility providers from the requirements to have a credit rating and a risk management programme.
Currently, the notice only applies to Interpayment Services Limited, which is a deposit taker to which Part 5D of the Act applies only by reason of issuing certain debt securities known as Travelex Cash Passports.
The notice is subject to conditions. It is intended that the generic conditions will apply to any payment facility provider to which the notice applies. In addition, clause 7 contains conditions that are individually tailored to Interpayment Services Limited.
The Bank, after taking into account the principles set out in section 157F of the Act, and satisfying itself as to the matters set out in section 157G(2) of the Act, considers it appropriate to grant the exemptions because—
the Bank does not consider that there are material benefits or additional protections that customers would gain if deposit takers who are payment facility providers have a credit rating or a risk management programme:
the additional direct and indirect costs of complying with these obligations are unduly onerous and burdensome in the circumstances. The relevant circumstances are that these products are not offered as investments to customers, and the other financial service activities of the deposit taker are restricted if the deposit taker is to benefit from the exemption. Therefore, compliance with the credit rating and risk management programme obligations would provide little additional benefit to that already in place through the specific conditions applying to the exempted deposit takers:
the generic conditions are narrowly drafted to ensure that the extent of the exemptions is not broader than necessary to address the matters that gave rise to the exemptions, and therefore the exemptions are consistent with the maintenance of a sound and efficient financial system.
Note: The preceding statement of reasons should be read in conjunction with the statement(s) of reasons appended to the:
Date of notification in Gazette: 15 October 2009.
1General
2Status of reprints
3How reprints are prepared
4Changes made under section 17C of the Acts and Regulations Publication Act 1989
5List of amendments incorporated in this reprint (most recent first)
This is a reprint of the Deposit Takers (Payment Facility Providers) Exemption Notice 2009. The reprint incorporates all the amendments to the notice as at 3 June 2011, as specified in the list of amendments at the end of these notes.
Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ 
.
Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.
This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.
A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.
Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.
A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.
In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:
•omission of unnecessary referential words (such as “of this section”
and “of this Act”
)
•typeface and type size (Times Roman, generally in 11.5 point)
•layout of provisions, including:
•indentation
•position of section headings (eg, the number and heading now appear above the section)
•format of definitions (eg, the defined term now appears in bold type, without quotation marks)
•format of dates (eg, a date formerly expressed as “the 1st day of January 1999”
is now expressed as “1 January 1999”
)
•position of the date of assent (it now appears on the front page of each Act)
•punctuation (eg, colons are not used after definitions)
•Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly
•case and appearance of letters and words, including:
•format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)
•small capital letters in section and subsection references are now capital letters
•schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly
•running heads (the information that appears at the top of each page)
•format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).
Add to web feed