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Financial Markets Conduct Act 2013

Governance of financial products - Governance of debt securities - Governing document requirements

109: Power to make FMA-approved changes to trust deeds

You could also call this:

"Changing trust deeds with the Financial Markets Authority's approval"

Illustration for Financial Markets Conduct Act 2013

If you want to change a trust deed for a debt security, you can do this with the Financial Markets Authority's consent. The Financial Markets Authority will agree to the change if they think it is necessary to make the trust deed follow the rules. You can make these changes even if the trust deed or other rules say you cannot. The Financial Markets Authority can decide what conditions must be met before they agree to the change, and they can choose to approve the change if they think it is the best way to make it happen. If the change is approved, it is treated as if it was allowed by the original trust deed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091087.

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108: Changes to trust deed, or

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Part 4Governance of financial products
Governance of debt securities: Governing document requirements

109Power to make FMA-approved changes to trust deeds

  1. An issuer may amend or replace a trust deed for a debt security with the FMA's consent if the FMA is satisfied that it is necessary to enable the trust deed to comply with this subpart or any enactment or rule of law.

  2. Subsection (1) applies despite anything to the contrary in the trust deed or in any enactment, rule of law, or agreement, including anything relating to the consent of any person to the making of amendments to the trust deed.

  3. The FMA's discretion to set preconditions for requests to it includes (without limitation) a discretion to set preconditions that satisfy the FMA that it is appropriate for the amendment or replacement to be made under this section rather than by means of another power or process.

  4. An amendment or a replacement made under this section must be treated for all purposes as if it were authorised by, and made in accordance with, the trust deed.