Reserve Bank says court will determine if allegation Westpac NZ breached Depositor Compensation Scheme disclosure requirements is correct

The Reserve Bank (RBNZ) says it has filed a charge against Westpac New Zealand alleging the bank has breached Depositor Compensation Scheme (DCS) disclosure requirements after the bank reported the issue to the RBNZ itself.

The RBNZ says Westpac’s Custodian PIE product was allegedly missing from its DCS webpage for about 109 days between 5 December 2025 and 24 March 2026. Westpac NZ says it reported the issue to the RBNZ itself, has fixed it, and there was no financial loss to customers.

"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," says RBNZ Director of Enforcement and Resolution, Kerry Beaumont.

"The infringement process allows us to respond to lower-level non-compliance in a way that matches the seriousness. We consider each case individually, including what the deposit taker has done to fix the problem and how it has co-operated with us," adds Beaumont.

The RBNZ says the alleged breach concerns missing information on Westpac’s DCS webpage, which didn't affect customers’ DCS protection or the operation or availability of the DCS. Westpac NZ has now added the product back to its website.

"This charge is an allegation. The District Court will decide whether the offence is proven and what fine, if any, to impose. RBNZ will not comment further while the matter is before the Court," the RBNZ says.

Westpac NZ says it self-reported an error on its website to the RBNZ where it didn't include a savings product covered under the DCS for a period of time.  

"This product was only directly available to two investment managers and there was no financial loss to customers. We have fixed the underlying issue to prevent the same error occurring again. We have co-operated and will continue to co-operate with the RBNZ," Westpac NZ says.