Bank of New Zealand Investment Statement for
Term Investments
For the Purposes of the
Securities Act 1978 this Investment Statement is prepared at 17 March 2009.
Important information
Choosing an Investment Advisor
What sort of investment is this?
Who is involved in
providing it for me?
Description of the Bank's
activities
How much do I pay?
What are the charges?
What returns will I get?
What are my risks?
Can the investment be altered?
How do I cash in my investment?
Who do
I contact with enquiries about my investment?
Is
there anyone to whom I can complain if I have problems with the investment?
What
other information can I obtain about this investment?
Important
information
(The information in this section is required under the Securities
Act 1978.)
Investment decisions are very important. They often have
long-term consequences. Read all documents carefully. Ask questions. Seek
advice before committing yourself.
Choosing
an Investment Adviser
An investment adviser must give you a written statement that
contains information about the adviser and his or her ability to give
advice. You are strongly encouraged to read that document and consider
the information in it when deciding whether or not to engage an adviser.
Tell the adviser what the purpose of your investment is. This is important
because different investments are suitable for different purposes, and
carry different levels of risk. The written statement should contain important
information about the adviser, including:
- relevant experience and qualifications, and whether
dispute resolution facilities are available to you; and
- what types of investments the adviser gives advice
about; and
- whether the advice is limited to investments offered
by 1 or more particular financial institutions; and
- information that may be relevant to the adviser’s
character, including certain criminal convictions, bankruptcy, any adverse
findings by a court against the adviser in a professional capacity,
and whether the adviser has been expelled from, or prohibited from joining,
a professional body; and
- any relationships likely to give rise to a conflict
of interest.
The adviser must also tell you about fees and remuneration before
giving you advice about an investment. The information about fees
and remuneration must include:
-
the nature and level of the fees you will be charged
for receiving the
advice; and
- whether the adviser will or may receive a commission
or other benefit from advising you. An investment adviser commits an
offence if he or she does not provide you with the information required.
In addition to the information in this document, important
information can be found in current disclosure statement for Bank of New
Zealand. You are entitled to a copy of the disclosure statement on request.
Please note that, notwithstanding anything said under
the description of "Engaging an investment adviser" set out
above, under the Securities Markets Act 1988 an investment adviser, such
as your Bank of New Zealand representative, is not required to provide
an investment adviser disclosure statement before giving advice in respect
of bank term deposits of the kind covered by this Investment Statement.
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What
sort of investment is this?
This Investment Statement is provided in relation to Term Investment products
offered to the public from time to time by Bank of New Zealand. This includes
blackboard and carded Term Investments as well as special offers when
these are offered from time to time. It also includes any Term Investments
which the Bank has tailored particularly for you. For the purposes of
this Investment Statement, these products are referred to as the "Investments"
and Bank of New Zealand is referred to as the "Bank".
Products from issuers other than the Bank and
products other than Term Investments are not covered by this Investment
Statement. If you are in doubt as to whether this Investment Statement
applies to your investment please ask the Bank staff member you are dealing
with.
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Who
is involved in providing it for me?
The issuer and promoter is Bank of New Zealand, whose address is 80 Queen
Street, Auckland.
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Description
of the Bank’s Activities
Since its establishment in 1861 the Bank has been carrying on
the business of banking and financial services in all its aspects in New
Zealand and other countries. A comprehensive range of banking and financial
services is provided including deposit taking, credit and debit cards,
corporate, domestic and multi-currency based lending, dealing in interest
rate and foreign exchange products and their derivatives, trade finance,
the distribution of life and general insurance, managed funds, KiwiSaver
and superannuation products, and the provision of investment advice.
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How
much do I pay?
Each Investment has a minimum and maximum sum that can be invested.
These can be ascertained by calling 0800 ASK BNZ (287 269), by searching
on www.bnz.co.nz or by contacting a BNZ representative. If you wish to
make an investment, the principal amount must be paid or transferred in
full to any branch, agency or customer contact centre of the Bank. If you
are arranging your Investment through an intermediary then you should
make arrangements with them for payment to be made to the Bank. The Bank
will not accept your Investment until full payment is received.
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What
are the charges?
No charges are currently payable by you to the Bank when you make an investment
in an Investment. If however, you wish to terminate or partially withdraw
a fixed term Investment before its maturity date, then the Bank may either
decline your request or charge you for this. This charge will take the
form of a change in the interest returns paid to you. Instead of the rate
quoted to you when you subscribed for the Investment, you will receive
the Bank’s standard per annum rate applying to the period of your
Investment up to the date of early withdrawal less an interest adjustment
on the amount being withdrawn early. This will be calculated on a daily
basis and paid to you at the time of withdrawal. The interest adjustment
may vary according to the type of Investment and the amount that is proposed
to be withdrawn. In some cases the interest adjustment may result in no
interest being payable on the amount being withdrawn before maturity.
If, at any time, prior to or during the term of the Investment, you wish
to know details of how the interest adjustment in respect an early withdrawal
of all or part of your Investment would be calculated and what the adjustment
would be, you can contact the Bank and it will be calculated for you.
There are no charges for withdrawing from a flexible term Investment prior
to the end of the term of the Investment. The Bank may from time to time
impose or modify fees and charges relating to the Investments. However,
during the term of any particular Investment the Bank cannot introduce
any new charges or change the way in which any charge is calculated for
that Investment.
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What
returns will I get?
The returns payable by the Bank on Investments are available
on request and will generally be a fixed interest rate during the term
of the Investment plus repayment of the principal invested. If you wish
the Bank can inform you of exactly what your returns will be, at the time
you make your Investment.
The key factors that will determine your returns
will be the interest rate that you agree to invest your money at, the
amount of principal you invest, the term of your Investment, and any tax
deductions. No amount of returns is quantifiable at the date of this Investment
Statement and therefore no such amount can be promised by the Bank in
this Investment Statement. However, once the terms and conditions of any
Investment (including the principal amount of, and the interest rate applicable
to, the Investment) have been agreed between the Bank and you, those terms
and conditions will be legally enforceable by you. Taxation is likely
to affect your returns. Unless you have supplied the Bank with a copy
of your current Certificate of Exemption, the Bank will deduct withholding
tax from any interest credited or paid to you.
Unless you hold a current Certificate of Exemption, Resident
Withholding Tax will generally be deducted from your returns at the rate
prescribed by law. If you are not resident in New Zealand, Non-Resident
Withholding Tax may be deducted at the rate prescribed by law. Alternatively,
if the Approved Issuer Levy applies to you, this will be deducted instead
of Non-Resident Withholding Tax. If your IRD number or personal tax rate
has not been supplied, deductions may be made at a rate than is higher
than otherwise might apply. You are responsible for advising the Bank
of any change to your personal tax rate or "resident" status.
Interest is calculated daily and may be payable (less any applicable tax)
either at the end of the term of the Investment, annually, six monthly,
quarterly or, in some cases, monthly depending on the type of Investment
that you choose. If applicable to the type of Investment that you select,
you may choose to have your returns compounded within the term. Choosing
to compound interest within the term of an Investment may impact on the
interest rate for the Investment when compared to the corresponding standard
fixed term Investment. If you do not choose to have interest compounded
within the term, your Investment will earn simple interest.
The principal you invest will be paid to you at the end
of the term of the Investment or you may choose to reinvest it (with or
without the interest earned) in a new Investment. If you choose a fixed
term you may request access to your Investment prior to maturity. In the
case of a fixed term Investment, the Bank is not bound to agree to a request
for payment of principal or interest prior to due date. Alternatively,
you may choose a flexible term. If you choose a flexible term you will
be able to access your Investment prior to the end of the term of the
Investment. The interest rate for a flexible term Investment is generally
set slightly lower than the rate for the corresponding fixed term investment.
The Bank may also
withhold payment of principal and interest after due date if it considers
there are reasonable grounds to do so, including on your death or bankruptcy,
where there is a third party claim on your account or where you are in
breach of any of the Bank’s terms and conditions. When returns are
payable then the Bank is legally liable to pay them to you.
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What
are my risks?
Investments are low risk investments. The main risks of you not recovering
the sum which you paid for the Investment or of not receiving the returns
described above are:
- the insolvency or statutory management of the Bank;
- the Bank receiving a tax deduction notice in respect
of your Investment; or
- the Bank exercising its rights to combine your accounts
or to set off funds held in credit against debts you owe to the Bank.
By law Inland Revenue has the power to collect taxes owing
from the Bank’s customers. It can order the Bank to deduct any sum
owing by a taxpayer from money the taxpayer has deposited with the Bank.
The Bank is obliged to comply with such orders.
Should the Bank become insolvent then certain transactions
may be voidable under the provisions of the Companies Act 1993. This may
result in you having to forgo or repay any returns you have received from
your Investment, including the principal.
Should the Bank be put into liquidation during the term
of the Investment, then secured creditors (if any) and those creditors
set out in the Seventh Schedule of the Companies Act 1993 will rank ahead
of your claim. These relate to liquidator’s fees, some salary and
wages and tax payable. Other claims, preferred by statute or law may also
rank ahead of you. After the payment of these creditors your claim will
rank equally with all others.
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Can
the investment be altered?
The Bank may at any time alter its Standard Terms and Conditions
for Accounts, and may alter the minimum and maximum amounts payable for
the Investments. Once an Investment is made, the specific terms relating
to that Investment cannot generally be altered without the agreement of
you and the Bank. Additional Investments can however be made at any time
on the terms and conditions applicable at that time.
As stated above, the Bank may in certain circumstances
agree to the early or partial withdrawal of the Investment (see ‘What
are the charges?’ section above for information relating to charges
and the Bank’s rights to impose and modify fees and charges for
the Investments).
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How
do I cash in my investment?
You may apply to cash in the Investment prior to maturity by contacting
the Bank. If your investment is a fixed term Investment, the Bank may
(at its discretion) decline your request. If it approves your request,
the charges referred to earlier in this Investment Statement will apply.
Under the law and its terms and conditions the Bank may also exercise
its power to combine your accounts and to set-off credit funds against
debts you owe to it. The Bank may also terminate your Investment on giving
you reasonable notice or if it considers there are reasonable grounds
to do so, including on your death or bankruptcy, where there is a third
party claim on your account or where you are in breach of any of the Bank’s
terms and conditions.
You are not able to sell or transfer the Investment to
any other person.
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Who
do I contact with enquiries about my investment?
Enquiries about the Investment can be made to any
BNZ representative at any branch or agency of the Bank or by phoning 0800
800 468.
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Is
there anyone to whom I can complain if I have problems with the investment?
Complaints about the Investment can be made to any Bank of New Zealand
representative at any branch or agency of the Bank. The first step is
to raise your concern with the person you dealt with initially. They should
be able to resolve the majority of problems and will listen to and investigate
your concern. If a staff member is unable to resolve your problem on the
pot, they will personally follow it up and keep you informed about action
being taken on your behalf. If the issue remains unresolved, contact the
Area Manager responsible for the branch. They look after a group of outlets
in your area and will then take charge of any outstanding issues. Your
branch will give you the name, address and phone number of the appropriate
manager. In the event the problem is still not resolved to your satisfaction,
you should refer your complaint to:
Complaint Resolution
Bank of New Zealand
PO Box 995, Shortland Street, Auckland
Telephone 0800 788 999
Any complaint which reaches this level will receive the
personal attention of a member of the Bank’s Complaint Resolutions
team. If after raising the matter with the Bank, you are still not satisfied,
the option is available to contact the Banking Ombudsman. The Banking
Ombudsman has been appointed by all the banks subscribing to the New Zealand
Bankers’ Association Code of Banking Practice. As an independent
party, the Banking Ombudsman will help reach resolution if this cannot
be achieved through the Bank’s own complaints system.
The telephone number of the Banking Ombudsman is 0800
805 950. Any correspondence should be addressed to:
The Office of the Banking Ombudsman
PO Box 10-573
Wellington 6015
help@bankombudsman.org.nz
Bank of New Zealand subscribes to the Code of Banking
Practice which sets out the minimum standards for resolving complaints.
The Code requires disputes to be resolved as quickly and equitably as
possible and that banks will be held accountable to these standards.
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What
other Information can I obtain about this investment?
Other information about Investments and the Bank is contained
in the Bank’s disclosure statement published under section 81 of
the Reserve Bank of New Zealand Act 1989, including in the financial statements
contained in that disclosure statement. A copy of this disclosure statement
and the Bank’s most recent financial statements can be obtained
free of charge from any branch or agency of the Bank and, along with other
documents relating to the Bank, are filed on a public register at the
Companies Office of the Ministry of Economic Development and are available
for public inspection. Other information about the Investment is available
from the Bank. Depending upon the product you choose, this may include
a brochure and/or fact sheet. A statement and Resident Withholding Tax
deduction certificate (if applicable) relating to the Investment will
be forwarded to you annually. Around two weeks prior to the Investment
maturing a maturity advice will also be sent to you. You may request information
about your Investment, such as the balance, from the Bank, from time to
time. Copies of the following information are also available from the
Bank on request:
- the Bank’s most recent annual report;
- the Bank’s most recent disclosure statement
(including the Bank’s most recent financial statements); and
- the most recent Investment Statement for Bank of New
Zealand Term Investments.
Requests should be made by telephoning 0800 ASK BNZ (287
269). If you obtain this information by using the Bank’s telephone
banking system, a small charge may be payable, otherwise there is no charge.
The amount of the charge will depend on the frequency of your use of the
telephone banking system. More information on any charge can be ascertained
by calling the 0800 number below or by contacting a Bank of New Zealand
representative.
You have rights of access to personal information that
the Bank holds about you under the Privacy Act 1993. If you wish to make
a request, please see the branch where your accounts are held. The Bank
may impose a reasonable charge for complying with a request.
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Download our Investment
Statement for Term Investment (PDF 69KB).
By operating
any of your accounts with us you agree to be bound by our Standard
Terms and Conditions. |