Depositor Compensation Scheme Transitional Provisions Standard Published

The Reserve Bank of New Zealand - Te Pūtea Matua has published a Transitional Standard, outlining how deposit takers must collect and store customer information in the event of a deposit taker failure so that they can ensure timely payments.

The Deposit Takers (Depositor Compensation Scheme Transitional Provisions) Standard 2025 comes into force on 1 July 2025 and sets out how deposit takers should gather alternate bank details from depositors in the event of a failure, so that Depositor Compensation Scheme (DCS) payments can be made as quickly as possible.

Deposit takers that provide online software for their depositors to view or manage their accounts, such as internet or mobile applications, must have a pre-positioned DCS depositor page that can be easily accessed on these platforms in the event of a failure. This requirement comes into effect on 1 July 2025 for non-mobile based platforms, and on 31 December 2025 for mobile-based applications.

The DCS depositor page will be used to collect customers’ alternate bank account details so that DCS payments can be made into an active bank account at another deposit taker.

Having a prepositioned DCS depositor page improves the user experience in the event of a failure as depositors will be able to verify their identity through their normal online process and enter their alternate account details. This should make the payment process faster and reduce risks associated with having to verify the identity of depositors on a separate platform.

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The Transitional Standard also sets out an alternate model for collecting customer data if deposit takers can collect the required information more efficiently using a different approach. 

Deposit takers have the option to submit a written proposal to the RBNZ that outlines their proposed alternate method for collecting depositor information securely from authorised individuals other than via a DCS depositor page.

The RBNZ consulted on a draft of this Transitional Standard between 6 December 2024 and 7 February 2025 and received 10 submissions from a combination of deposit takers and industry bodies.

You can find the Transitional Standard and Guidance here: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=6911a962bd&e=456d2b38b7

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