Sarah McMillan/cvnznews.com
The Reserve Bank of New Zealand (RBNZ) has filed a charge against Westpac New Zealand Limited, alleging the bank failed to meet disclosure requirements under the country’s Depositor Compensation Scheme (DCS).
The allegation relates to Westpac’s Custodian PIE product, which the Reserve Bank says was missing from the bank’s DCS webpage for approximately 109 days between 5 December 2025 and 24 March 2026.
Under the Deposit Takers Act 2023, banks and other deposit takers are required to provide clear, accurate and up-to-date information about products covered by the Depositor Compensation Scheme, which protects eligible deposits if a licensed deposit taker fails.
Reserve Bank Director of Enforcement and Resolution Kerry Beaumont said access to reliable information is a key part of the protection framework.
“Depositors need to know whether their money is protected by the DCS. Deposit takers must provide complete, accurate and up-to-date information that is easy to find. We take non-compliance with these core requirements seriously and will take enforcement action where appropriate,” she said.
The Reserve Bank said the alleged breach concerned information published on Westpac’s DCS webpage and did not affect customers’ entitlement to DCS protection, nor the operation or availability of the scheme itself.
Westpac has since restored the product information to its website.
According to the Reserve Bank, the infringement process provides a way to address lower-level instances of non-compliance while taking into account the seriousness of the breach, the steps taken to rectify the issue, and the level of cooperation shown by the institution involved.
The regulator emphasised that the charge remains an allegation at this stage. The matter will be considered by the District Court, which will determine whether an offence has been proven and what penalty, if any, should apply.
The case is among the early enforcement actions connected to New Zealand’s Depositor Compensation Scheme and signals the Reserve Bank’s focus on ensuring financial institutions meet their disclosure obligations as the new depositor protection regime becomes established.
