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Financial Markets Conduct Act 2013

Governance of financial products - Governance of debt securities

103: Need for governing document and supervisor for regulated offer of debt security

You could also call this:

"You need a special document and a supervisor to legally sell debt securities in New Zealand."

Illustration for Financial Markets Conduct Act 2013

If you want to offer debt securities in a regulated way, you must have a trust deed for those securities. The trust deed must comply with certain rules, which are outlined in sections 104 to 106. You must also lodge the trust deed with the Registrar, along with a certificate that says it complies with those rules.

You also need a licensed supervisor who is in charge of the trust deed for the debt securities. This supervisor must be licensed to supervise the type of debt security you are offering, as outlined in the Financial Markets Supervisors Act 2011. The supervisor's licence must cover the supervision of the debt security.

If you issue debt securities, you must make sure that you have a trust deed and a licensed supervisor until the securities are cancelled, redeemed, or forfeited, or until all the obligations have been paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091080.

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Previous

102: Overview, or

"A guide to the rules for financial products in New Zealand, including debt securities and investments."

Next

104: Contents of trust deed for debt securities, or

"What a trust deed for debt securities must include to protect you"

Part 4Governance of financial products
Governance of debt securities

103Need for governing document and supervisor for regulated offer of debt security

  1. A person must not make a regulated offer of a debt security unless—

  2. there is a trust deed for the debt security that—
    1. complies with sections 104 to 106; and
      1. is lodged with the Registrar with a certificate from the issuer and supervisor to the effect that the trust deed complies with those sections on the basis set out in the certificate; and
      2. there is a licensed supervisor—
        1. who is designated or appointed as the trustee under the trust deed for the debt security (or under the Financial Markets Supervisors Act 2011); and
          1. whose licence covers supervision of the debt security.

          2. A reference in this subpart to—

          3. a trust deed is a reference to the trust deed required by subsection (1); and
            1. a debt security is a reference to a debt security offered under a regulated offer.

              1. The issuer of the debt security must ensure that there continues to be a trust deed and licensed supervisor as required by subsection (1) until the debt security is cancelled, redeemed, or forfeited, or all of the obligations owing under the debt security have been discharged.

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