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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products

124: Overview

You could also call this:

"What investment schemes must do to follow the law"

Illustration for Financial Markets Conduct Act 2013

This part of the law tells you when investment schemes need to be registered. It also says that registered schemes must follow certain rules about how they are run and report information. You will find rules about the people in charge of these schemes owing duties to the investors.

The people in charge of a registered scheme and those who supervise it must take care of the investors. The property of a registered scheme must be looked after independently from the person managing the scheme. This means the person managing the scheme cannot also be in charge of looking after the scheme's property.

This section gives you a general idea of what this part of the law is about.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091106.

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125: Need to register managed investment scheme for regulated offer of managed investment product, or

"You must register a managed investment scheme before selling its products to people or taking their money."

Part 4Governance of financial products
Governance of managed investment products

124Overview

  1. This subpart—

  2. sets out when managed investment schemes need to be registered; and
    1. requires registered schemes, irrespective of legal form, to meet key common governance and reporting requirements; and
      1. provides for the manager and independent supervisor of a registered scheme to owe statutory duties of care to investors; and
        1. provides for the custodianship of scheme property of a registered scheme to be independent from the manager.

          1. This section is only a guide to the general scheme and effect of this subpart.