On May 21, 2025, NZ CB published DCS transitional provisions standard outlining how deposit takers must collect and store customer information in event of deposit taker failure to ensure timely payments, such as the gathering of alternate bank details.
In addition, NZ CB issued guidance on the DCS transitional standard re the above.
Deposit takers that provide online software for depositors to view or manage accounts, such as internet or mobile applications, must have pre-positioned DCS depositor page that can be easily accessed on these platforms in the event of failure.
DCS depositor page will be used to collect customers' alternate bank account details so that DCS payments can be made into active bank account at another deposit taker.
Pre-positioned DCS depositor page improves user experience in event of failure as depositors will be able to verify identity through normal online process and enter alternate account details; should make payment process faster and reduce risks.
The requirement re pre-positioned DCS depositor pages comes into effect Jul. 1, 2025, for non-mobile based platforms and Dec. 31, 2025, for mobile-based applications.
On Dec. 6, NZ CB proposed compensation transitional standard.
NZ CB issued consultation on depositor compensation scheme (DCS) transitional standard, to require deposit takers to develop DCS webpage on banking platforms.
DCS will provide compensation up to NZD 100k per eligible depositor per institution if deposit taker fails; requires depositors to have alternative account to receive compensation; provides exclusions for deposit takers without online banking platforms.
Flexibility for deposit takers to identify better way to collect alternative account details.
Approach calibrated by deposit taker categories per DTA proportionality framework.
Comment Period
The consultation is open until Feb. 7, 2025.
Standard Published
On May 21, 2025, NZ CB published DCS transitional provisions standard outlining how deposit takers must collect and store customer information in event of deposit taker failure to ensure timely payments, such as the gathering of alternate bank details.
In addition, NZ CB issued guidance on the DCS transitional standard re the above.
Deposit takers that provide online software for depositors to view or manage accounts, such as internet or mobile applications, must have pre-positioned DCS depositor page that can be easily accessed on these platforms in the event of failure.
DCS depositor page will be used to collect customers' alternate bank account details so that DCS payments can be made into active bank account at another deposit taker.
Pre-positioned DCS depositor page improves user experience in event of failure as depositors will be able to verify identity through normal online process and enter alternate account details; should make payment process faster and reduce risks.
The requirement re pre-positioned DCS depositor pages comes into effect Jul. 1, 2025, for non-mobile based platforms and Dec. 31, 2025, for mobile-based applications.
