Applying to be a non-bank deposit taker (NBDT)

Applying to the Reserve Bank for licensing

All NBDTs must be licensed by the Reserve Bank of New Zealand. All licensed NBDTs are listed on an NBDT Register which the Reserve Bank maintains.

Applying for a licence

Anyone intending to offer services as an NBDT must apply to the Reserve Bank for a licence and satisfy conditions under the Non-bank Deposit Takers Act 2013.

Non-bank Deposit Takers Act 2013 — Section 13 New Zealand Legislation

If you're entitled, you apply to the Reserve Bank for a licence.

NBDT licensing Reserve Bank

The Reserve Bank's role

The Reserve Bank regulates and supervises all licensed NBDTs in New Zealand and is responsible for administering the Non-bank Deposit Takers Act 2013.

Overview of the NBDT regime Reserve Bank

The Reserve Bank also maintains a register of NBDTs.

Public register of licensed NBDTs Reserve Bank

What defines an NBDT

NBDTs are defined in Section 5 of the Non-bank Deposit Takers Act 2013. They can offer debt securities to customers in New Zealand, and provide financial services, including borrowing and lending money. NBDTs don't include registered banks, local authorities or the Crown.

Non-bank Deposit Takers Act 2013 — Section 5 New Zealand Legislation

What debt securities are

Debt securities are investments where people lend money to, or deposit money with, an institution in exchange for the payment of interest or some other right in return. Sometimes the investments are secured over the assets of the institution by way of a debenture.

Common debt securities are:

  • debentures — where the investment is secured over the assets of the institution
  • bonds — such as New Zealand Government Stock, and
  • capital notes.

After you're licensed as an NBDT

Every provider registered on the Financial Service Providers Register (FSPR) must file an annual confirmation and pay the associated fee.

How to file an annual confirmation

At the same time you pay a levy to the Financial Markets Authority (FMA). The amount you pay depends on your total assets as an NBDT and the other financial services you provide. As a licensed NBDT, the FMA levies you pay come under Class 2 of the Financial Markets Authority (Levies) Amendment Regulations 2012.

Schedule of fees and levies

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