Depositor Compensation Scheme Regulations

Closed 10 May 2024

Opened 11 Mar 2024


We are consulting on policy proposals for regulations under the Deposit Takers Act 2023 (DTA).

The DTA creates a new prudential regime by:

  • integrating the currently separate regimes for banks and non-bank deposit takers, and
  • introducing the Depositor Compensation Scheme (DCS).

Regulations are necessary to bring the DCS into being. Many of the regulations are technical in nature.

What is the DCS?

The DCS will protect customers for up to NZ$100,000 per customer, per deposit taker, if the deposit taker fails. Deposit takers will pay levies into a fund which will pay for the DCS.

Why we need your feedback

Regulations are secondary legislation made by Order in Council on the Minister of Finance's recommendation. We provide advice to the Minister to propose regulations. This consultation will help with the development of this advice.

The DCS levies are to be set by regulations. The DTA specifies that deposit takers will meet all costs of the fund.

Regulations will also help to:

  • determine the detailed eligibility rules

  • payout conditions, and

  • resolve detailed issues such as exemptions and determining balances for payments made but not yet settled.

Read the consultation paper

Depositor Compensation Scheme Regulations consultation paper (PDF, 901KB)