17 NOVEMBER NEW ZEALAND GAZETTE 4429

The Key Information Summary must be displayed prominently in each bank branch and must be available free of charge immediately upon request. The Key Information Summary provides a brief summary of key financial information on the registered bank and banking group.

The General Short Form Disclosure Statement is required to contain a range of financial and corporate information on the bank and its banking group. The General Short Form Disclosure Statement need not be displayed in each bank branch, but must be made available free of charge within five working days of a request having been made for it at a bank branch or agency, or immediately from a bank’s head office. The information required to be included in a General Short Form Disclosure Statement includes:

a. a statement as to whether the bank has a credit rating, and if so, a disclosure of that rating;

b. short form financial statements for the banking group, including details on asset quality;

c. information, both as at the end of the off quarter and peak over the accounting period to date, on the banking group’s exposure concentration to individual counterparties and groups of closely related counterparties;

d. descriptions of the banking group’s policies and systems for managing risks in respect of a new category of risk not previously incurred by the banking group;

e. statements signed by the directors of the bank, including an attestation as to whether the directors are satisfied that the banking group’s internal controls are adequate for managing the group’s material business risks and whether the controls are being properly applied, and a statement that the disclosure statement is not false or misleading.

The General Short Form Disclosure Statement required by this Order in Council is an abbreviated version of the General Disclosure Statement required by the Registered Bank Disclosure Statements (Full and Half-Year - Overseas Incorporated Registered Banks) Order 1995.

Each bank must also publish a Supplemental Disclosure Statement, unless the information it would include is contained in the General Short Form Disclosure Statement.

The Supplemental Disclosure Statement must be made available free of charge within five working days of a request being made for it at a bank branch or agency, or immediately from a bank’s head office. This Order in Council requires the following information to be contained in a Supplemental Disclosure Statement:

a. the conditions of registration imposed by the Reserve Bank on the registered bank pursuant to section 74 of the Reserve Bank of New Zealand Act;

b. the contract of guarantee and financial statements of any guarantor, where the material obligations of the registered bank or of a public issuer within the banking group are guaranteed;

c. the most recent publicly available financial statements of the overseas bank and overseas banking group of which the registered bank is part.

A bank has two months from its off-quarter balance date to publish the disclosure statements required by this Order in Council. The exceptions to this are:

a. where a bank elects to have its General Short Form Disclosure Statement audited by an external auditor; or

b. where a bank has not previously published a disclosure statement under the new disclosure arrangements;

in which case the bank has three months to publish its disclosure statement.

The disclosure statements published pursuant to this Order in Council are not required to be audited nor to be subject to a limited review.

The disclosure statements required by this Order in Council must be signed by all the directors of the bank. A director may authorise in writing another person to sign on his or her behalf.

The Reserve Bank of New Zealand Act provides for criminal and civil penalties where a bank’s disclosure statement is found to be false or misleading.

This Order in Council is administered in the Reserve Bank of New Zealand.

PUBLISHED BY AUTHORITY OF DEPARTMENT OF INTERNAL AFFAIRS:
GP PRINT LIMITED, WELLINGTON, NEW ZEALAND—1995
DEPARTMENT OF INTERNAL AFFAIRS
TE TARI TAIWHENUA

ISSN 0111-5650 Price $3.95 (inc. G.S.T)
68304D—95A