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Financial Markets Conduct Act 2013

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

122: Change of supervisor

You could also call this:

"What happens when a supervisor of a debt security stops doing their job"

Illustration for Financial Markets Conduct Act 2013

If you are a supervisor of a debt security, you stop being the supervisor in certain situations. You stop being the supervisor if you are removed by the FMA or the issuer under Part 2 of the Financial Markets Supervisors Act 2011, or if you are removed by a special resolution of the holders of the debt security, or if you are removed or resign in accordance with the trust deed.

When you stop being a supervisor, all your tasks must be finished, or another licensed supervisor must be appointed to take your place, or the court must agree.

You cannot be removed by the issuer without the FMA's consent, even if the trust deed says you can.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091103.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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121: Supervisor's attendance at meetings of product holders and power to appoint chair, or

"Supervisor's role at meetings with people who own debt securities"

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123: Lodging of notice of change of supervisor, or

"Tell the Registrar when you change the person in charge of a debt security"

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

122Change of supervisor

  1. The supervisor of a debt security ceases to hold that appointment (subject to subsection (2)) if the supervisor—

  2. is removed by the FMA or the issuer under Part 2 of the Financial Markets Supervisors Act 2011; or
    1. is removed by a special resolution of the holders of the debt security; or
      1. is removed or resigns in accordance with the trust deed.

        1. However, a supervisor may not—

        2. be removed or resign under subsection (1)(b) or (c) unless—
          1. all functions and duties of the position have been performed; or
            1. another licensed supervisor has been appointed, and accepted the appointment, in its place; or
              1. the court consents:
              2. (despite anything in the trust deed) be removed by an issuer of the debt security under subsection (1)(c) without the FMA's consent.

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