Depositor Compensation Scheme (DCS) product hierarchy policy

Closes 28 Mar 2025

Opened 13 Feb 2025

Contact

dta@rbnz.govt.nz

Overview

We are engaging with the deposit taking sector on our proposed Depositor Compensation Scheme (DCS) product hierarchy policy.

This policy will determine the order in which deposit products (or types of accounts) will be paid out under a DCS payout event or in the case of a DCS contribution to resolution of a deposit taker.

Following feedback, we intend to publish a finalised product hierarchy policy document by June 2025.

How to have your say

Email us at dta@rbnz.govt.nz by 28 March 2025. 

The policy document includes the following questions that you can respond to when providing feedback. We also welcome any general feedback. 

Policy questions

Q1. Do you agree with the proposal to establish a protected deposit product hierarchy for apportioning compensation under the DCS?

Q2.  Do you have any comments on the proposal to have two broad groups in the deposit hierarchy, namely transactional and non-transactional deposit products, based on characteristics such as liquidity and accessibility?

Q3.  Do you agree with prioritising principal in the protected deposits before accrued interest when apportioning compensation under the DCS?

Q4.  Do you agree to the proposed treatment of accrued interest and deposits held under relevant arrangements when apportioning compensation under the DCS?

Q5. Do you agree with individual accounts being prioritised over joint accounts within each tier of the proposed product hierarchy?

Download DCS product hierarchy policy 291.2 KB (PDF document)