Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Governance of financial products - Governance of debt securities - Role of supervisor

119: Power of supervisor to engage expert

You could also call this:

"The supervisor can get expert help to check a company's finances and management."

Illustration for Financial Markets Conduct Act 2013

The supervisor of a debt security can get help from an expert, like an auditor or valuer, if they think it's necessary to do their job. You can think of an expert like a specialist who can help the supervisor understand things like the financial position of the company that issued the debt security. The supervisor might need help to review the company's business or management systems.

If the supervisor gets an expert to help, the company that issued the debt security must assist the expert and pay their fees. The company must provide reasonable assistance to the expert so they can do their job. The fees and expenses of the expert must be reasonable, and the company is responsible for paying them.

The supervisor's power to engage an expert is similar to a previous rule, which you can find in the SR 2009/230 Schedule 15 cl 3C.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091098.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

118: Duty of issuer to report serious financial problems, or

"Tell the supervisor if you might not be able to pay your debts"

Next

120: Meetings of product holders, or

"Rules for meetings of people who own debt securities"

Part 4Governance of financial products
Governance of debt securities: Role of supervisor

119Power of supervisor to engage expert

  1. The supervisor of a debt security is entitled, in the performance of the supervisor's functions, to engage an expert (for example, an auditor, investigating accountant, valuer, or actuary) if the supervisor considers, on reasonable grounds, that it requires the assistance of the expert to—

  2. determine the financial position of the issuer; or
    1. review the business, operation, or management systems, or the governance, of the issuer.

      1. If the supervisor engages an expert under this section,—

      2. the issuer must provide reasonable assistance to the expert to allow the expert to provide the assistance under subsection (1); and
        1. the fees and expenses of the expert, which must be reasonable in the circumstances, must be paid by the issuer.

          Compare
          • SR 2009/230 Schedule 15 cl 3C