NBDT Licensing

The Non-bank Deposit Takers Act 2013 (the NBDT Act) comes into force on 1 May 2014. From this date, all Non-bank Deposit Takers (NBDTs) will need to be licensed. A one-year transition period will enable existing NBDTs to meet the new licensing rules.

As part of the licensing process, the Reserve Bank will assess an applicant's ability to comply with the requirements of the NBDT Act. The Bank will also assess the suitability of directors and senior officers of the applicant.

NBDTs wishing to obtain a licence must apply to the Reserve Bank. They will need to complete an application form and provide specific information. All directors and senior officers of the applicant will need to provide a suitability notice. Application forms, templates and guidance materials are provided below.

Applying for a licence

NBDT licence applicants will need to submit an NBDT licence application form to the Bank and a suitability notice for each director and senior officer, or proposed director and senior officer, of the applicant. The applicant will also need to provide financial information and, in certain circumstances, information about its controllers.

The following guidance documents explain more about the licence application process and the information required. These should be read before the applicant begins to develop its application:

The following forms must, where appropriate, be completed and submitted to the Bank when applying for a licence (section 3 of the NBDT licence application form explains the circumstances in which corporate / individual controller forms need to be completed).

The Bank has produced template suitability notices that can be used for the purposes of submitting suitability notices to the Bank.

Who needs to obtain a licence, and by when?

Anyone wanting to carry on the activities of an NBDT, as defined in section 5 of the NBDT Act, needs to obtain a licence before providing these activities, unless they benefit from the transitional provisions described below. An NBDT is defined in section 5 of the NBDT Act, and includes:

  • persons offering debt securities to the public in New Zealand who also carry on the business of borrowing and lending money or providing financial services, or both;
  • persons who were previously an NBDT, or were a deposit taker as defined by section 157C of the Reserve Bank of New Zealand Act 1999, and who still have debt securities that were issued to the public in New Zealand that remain unpaid; and
  • persons declared by regulations to be NBDTs.

Existing NBDTs (i.e. deposit takers under Part 5D of the Reserve Bank of New Zealand Act 1989 immediately before the NBDT Act came into force) who continue to be NBDTs under the NBDT Act will need to have obtained a licence within 12 months of the NBDT Act coming into force.

NBDT licence application update

This November 2014 newsletter (PDF 69KB) sets out the general conditions of licence for NBDTs and provides further guidance about the suitability regime for directors and senior officers of NBDTs.

This July 2014 newsletter (PDF 949KB) provides a brief update on the licensing process and common issues associated with applications received to date.

[1] If using the electronic version of the NBDT license application form, we recommend that you download and save a copy of the PDF form to your computer first, and then use Adobe Reader 10.0 or greater to open it rather than attempting to open the PDF directly using your web browser.

Obtaining consent for change of ownership

A person increasing their level of influence over a licensed NBDT under section 43 of the Act must obtain the written consent of the Bank before completing the transaction. The person must submit a completed application for change of ownership (PDF 144KB) to apply for the consent from the Bank.