Financial Markets Conduct (Depositor Compensation Scheme) Amendment Regulations 2025
2025/136
Financial Markets Conduct (Depositor Compensation Scheme) Amendment Regulations 2025
Cindy Kiro, Governor-General
Order in Council
At Wellington this 16th day of June 2025
Present:
Her Excellency the Governor-General in Council
These regulations are made under section 543 of the Financial Markets Conduct Act 2013—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Commerce and Consumer Affairs made in accordance with sections 549 and 550 of that Act.
Contents
Regulations
1 Title
These regulations are the Financial Markets Conduct (Depositor Compensation Scheme) Amendment Regulations 2025.
2 Commencement
These regulations come into force on 1 July 2025.
3 Principal regulations
These regulations amend the Financial Markets Conduct Regulations 2014.
4 Regulation 5 amended (Interpretation)
In regulation 5(1), insert in their appropriate alphabetical order:
depositor compensation scheme has the same meaning as in section 6 of the Deposit Takers Act 2023
protected deposit has the same meaning as in section 192 of the Deposit Takers Act 2023
5 New regulation 42C inserted (Requirement to include all material information does not apply to information about depositor compensation scheme)
After regulation 42B, insert:
42C Requirement to include all material information does not apply to information about depositor compensation scheme
(1)
Section 57(1)(b)(ii) of the Act does not apply to information about the depositor compensation scheme.
(2)
This regulation is revoked on 1 July 2026.
6 Schedule 1 amended
In Schedule 1,—
(a)
insert the Part set out in the Schedule of these regulations as the last Part; and
(b)
make all necessary consequential amendments.
7 Schedule 2 amended
(1)
In Schedule 2, after clause 3, insert:
3A Application of schedule to depositor compensation scheme
The following clauses do not require any disclosure in relation to the depositor compensation scheme:
(a)
clause 10:
(b)
clause 33:
(c)
clause 38:
(d)
clause 63(1)(a)(iv) and (ba)(iv):
(e)
clause 65(1)(a):
(f)
clause 68(1)(a) and (b).
(2)
In Schedule 2, clause 5(1), after the item relating to credit ratings, insert:
Protection under depositor compensation scheme
(3)
In Schedule 2, after clause 5(3), insert:
(3A)
If the PDS is for an offer of debt securities that are not protected deposits, the KIS is not required to have a section headed “Protection under depositor compensation scheme”
.
(4)
In Schedule 2, clause 5(5), replace “16”
with “16A”
.
(5)
In Schedule 2, after clause 16, insert:
16A Protection under depositor compensation scheme
If the debt securities are protected deposits, the KIS must contain a statement in the following form:
“[Name of financial products] are protected deposits under the depositor compensation scheme, which protects up to $100,000 per eligible depositor per deposit taker. For more information about the scheme, please refer to the Reserve Bank of New Zealand’s internet site at www.rbnz.govt.nz/dcs”
.
8 Schedule 7 amended
(1)
In Schedule 7, after clause 3(4), insert:
(5)
If the PDS is for an offer of debt securities that are protected deposits, the PDS must contain a statement in the following form:
“[Name of financial products] are protected deposits under the depositor compensation scheme, which protects up to $100,000 per eligible depositor per deposit taker. For more information about the scheme, please refer to the Reserve Bank of New Zealand’s internet site at www.rbnz.govt.nz/dcs”
.
(2)
In Schedule 7, after clause 12(2), insert:
(3)
This clause does not require any disclosure in relation to the depositor compensation scheme.
Schedule New Part 12 inserted into Schedule 1
Part 12 Provisions relating to Financial Markets Conduct (Depositor Compensation Scheme) Amendment Regulations 2025
61 Transition period for requirements relating to depositor compensation scheme
(1)
This clause applies until the close of 30 June 2026.
(2)
An issuer is not required to comply with clause 16A of Schedule 2 and include in the KIS a section headed “Protection under depositor compensation scheme”
but may choose to do so.
(3)
An issuer is not required to comply with clause 3(5) of Schedule 7 but may choose to do so.
Rachel Hayward,
Clerk of the Executive Council.
Explanatory note
This note is not part of the regulations but is intended to indicate their general effect.
These regulations, which come into force on 1 July 2025, amend the Financial Markets Conduct Regulations 2014 to take into account the depositor compensation scheme (the DCS) coming into force on 1 July 2025.
The DCS is established under the Deposit Takers Act 2023. It protects up to $100,000 per eligible depositor per deposit taker in the event that a deposit taker fails.
For deposits covered by the DCS (called “protected deposits”
), the amendments insert a requirement for the product disclosure statement (the PDS) to include standard wording relating to the DCS.
Issuers will have a 1-year transition period before they must meet this new requirement. To allow for this, during the transition period issuers will not be required to disclose information about the DCS under section 57(1)(b)(ii) of the Financial Markets Conduct Act 2013, which requires the register entry to include material information not contained in the PDS. Investors can refer to a deposit taker’s website for a list of protected deposits, which is required to be published under section 193 of the Deposit Takers Act 2023.
Date of notification in Gazette: 19 June 2025.
These regulations are administered by the Ministry of Business, Innovation, and Employment.