The Hon Dame SUSAN GLAZEBROOK, Administrator of the Government

Order in Council

At Wellington this 3rd day of August 2015

Present:

Her Excellency the Administrator of the Government in Council

Pursuant to section 81 of the Reserve Bank of New Zealand Act 1989, Her Excellency the Administrator of the Government, acting on the advice and with the consent of the Executive Council and on the advice of the Minister of Finance given in accordance with a recommendation of the Reserve Bank of New Zealand, makes the following Order.

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Order

1. Title

This order is the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014 Amendment Order (No. 2) 2015.

2. Commencement

This order comes into force on 30 September 2015.

3. Principal order amended

This order amends the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.

4. Interpretation

(1) This clause amends subclause 4(1).

(2) Replace the definition of “applicable financial reporting standard” with:

“applicable financial reporting standard has the same meaning as in section 5(1) of the Financial Reporting Act 2013”

(3) Replace the definition of “financial reporting group” with:

“financial reporting group has the same meaning as “group” in section 6(1) of the Financial Markets Conduct Act 2013”

(4) Replace the definition of “generally accepted accounting practice” with:

“generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013”

(5) Replace the definition of “issuer” with:

“issuer has the same meaning as in section 11 of the Financial Markets Conduct Act 2013”

(6) Replace the definition of “subsidiary” with:

“subsidiary has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013”

5. Other amendments to clause 4

Repeal subclauses 4(3) and 4(4).

6. Clause 5 amended

Replace subclause 5(2) with:

“(2) Balance date—

(a) in subclause (1), has the same meaning as in section 5(1) of the Financial Reporting Act 2013; or

(b) for a first disclosure statement, means the date determined by the Reserve Bank.”

7. Clause 24 amended

(1) Replace subclause 24(1) with:

“(1) A full year disclosure statement of a registered bank must contain or be accompanied by the financial statements of the registered bank’s banking group.”

(2) Replace subclause 24(2) with:

“(2) The financial statements referred to in subclause (1) must be prepared in accordance with the requirements of the Financial Reporting Act 2013 and Financial Markets Conduct Act 2013 as if—

(a) every reference in those Acts to a group were a reference to the registered bank’s banking group; and

(b) the registered bank and its banking group do not qualify for any exemptions under any differential reporting framework that applies to them.”

(3) Repeal subclause 24(2A).

8. Clause 2 of Schedule 1 amended

(1) In subclause 2(1) of Schedule 1 replace “Subject to subclause (2), the” with “The”.

(2) In each of paragraphs 2(1)(e), 2(1)(f), 2(1)(g) and 2(1)(h)(i) of Schedule 1 replace “the registered bank and its banking group” with “the registered bank’s banking group”.

(3) In paragraph 2(1)(i) of Schedule 1, replace “listed in subclause (3)” with “listed in subclause (2)”.

(4) Repeal subclause 2(2) of Schedule 1.

(5) Renumber subclause 2(3) of Schedule 1 as subclause 2(2).

9. Clause 1 of Schedule 4 amended

In subclause 1(1) of Schedule 4 replace “the registered bank and its banking group” with “the registered bank’s banking group”.

10. Clause 2 of Schedule 4 amended

In subclause 2(1) of Schedule 4 replace “the registered bank and its banking group” with “the registered bank’s banking group”.

11. Clause 3 of Schedule 4 amended

In subclause 3(1) of Schedule 4 replace “the registered bank and its banking group” with “the registered bank’s banking group”.

12. Clause 4 of Schedule 4 amended

In subclause 4(1) of Schedule 4 after “financial assets” insert “in respect of the registered bank’s banking group”.

13. Clause 1 of Schedule 7 amended

In paragraph 1(1)(a) of Schedule 7 replace “the registered bank and its banking group” with “the registered bank’s banking group”.

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M. L. C. WEBSTER, Clerk of the Executive Council.

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Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order comes into force on 30 September 2015. It amends the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014, published in a Supplement to the New Zealand Gazette, 21 February 2014, No. 21, page 452. The purpose of this order is to update disclosure requirements for New Zealand-incorporated registered banks. It removes the requirement for a bank’s full year disclosure statement to include the financial statements of the bank on a stand-alone basis (unless the registered bank is the only entity in its financial reporting group). The order also removes superseded references to the Financial Reporting Act 1993.

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This order is administered by the Reserve Bank of New Zealand