18.1. Application

This chapter applies to an Authorised Firm that is licensed by the AFSA to conduct the Regulated Activity of Accepting Deposits and/or Opening and Operating Bank Accounts. An Authorised Firm that is licensed to conduct the Regulated Activity of Accepting Deposits and/or Opening and Operating Bank Accounts is defined as a Bank in BBR 1.5.

18.2. Accepting Deposits

A Bank, in the course of Accepting Deposits, must not accept Deposits from Retail Clients.

18.3. Terms of business for Accepting Deposits — general requirements

(1) A Bank accepting a Deposit from a Client must give the Client its terms of business, before the acceptance of the first Deposit from that Client.

(2) This rule does not apply if the activity of Accepting Deposits is carried on after the termination of the terms of business and the Bank is acting only for the purposes of fulfilling any obligations that remain outstanding under the terms of business.

18.4. Terms of business for Accepting Deposits — contract

(1) A Bank must ensure that its terms of business for accepting a Deposit from a Client contain, in adequate detail, the basis on which it will accept the Deposit from that Client.

(2) Without limiting (1), the Bank must ensure that the terms of business contain the information as specified by the rules in this chapter (Minimum content of terms of business— Accepting Deposits).

(3) A Bank is not required to include information in the terms of business if the information is, by its nature, unavailable when the terms of business are given to the Client. If such information becomes available after the terms of business are given to the Client, the Bank must give the information to the Client as soon as practicable after it becomes available to the Bank.

18.5. Terms of business for Accepting Deposits — multiple documents

A Bank’s terms of business for a Client for the activity of Accepting Deposits may consist of one or more documents if it is made clear to the Client that collectively they make up the terms of business.

18.6. Terms of business for Accepting Deposits — amendment

If the terms of business of a Bank for a Client for the activity of Accepting Deposits allow the Bank to amend the terms of business without the Client’s agreement, the Bank must not conduct business with or for the Client on the basis of an amendment of the terms of business unless the Bank has given the Client written notice of the amendment:

1. (a) at least 10 business days before the amendment is to take effect; or
2. (b) if it is impractical to give that notice, as early as is practicable.

18.7. Terms of business for Accepting Deposits — recordkeeping

A Bank must keep a copy of a terms of business that it gives a Client under this chapter, and of each amendment of the terms of business, for at least 6 years after the day the Bank ceases to conduct business with or for the Client under the terms of business

18.8. Terms of business for Accepting Deposits — minimum content

(1) Commencement of the terms of business – when and how the terms come into force.

(2) Regulatory status of the Bank as required by the GEN Rules.

(3) The services to be provided by the Bank, including, if applicable, the provision of credit, cheque clearing and provision of statements.

(4) The Bank’s fee payment terms, including, if appropriate

1. (a) how fees are calculated; and
2. (b) how fees are to be paid and collected; and
3. (c) how frequently fees are to be paid; and
4. (d) whether any other payment is receivable by the Bank (or to its knowledge by any members of its Group) instead of fees in relation to a transaction executed by the Bank with or for the Client.

(5) The Bank’s terms relating to interest, including, if appropriate

1. (a) how interest is calculated for both debit and credit balances; and
2. (b) how interest is paid or collected depending on whether the account is having debit or credit balances; and
3. (c) how frequently interest is charged and paid.

(6) The Bank’s approach to dealing with any applicable conflicts of interest and material interests.

(7) Information about the Bank’s internal complaint handling procedures, including information about how a complaint may be made to the Bank.

(8) The details of the arrangement for the Client to provide instructions to the Bank and for the Bank to acknowledge such instructions.

(9) Method of terminating account relationships, either by the bank or by the Client and the consequences of termination in either case.