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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Need to register

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

You cannot make a regulated offer of a managed investment product unless the scheme is registered. If someone has already made a regulated offer, you cannot accept more money unless the scheme is registered. You can register a scheme even if no one is making a regulated offer, but the products in the scheme must be regulated under section 41.

If you register a scheme with no regulated offer, the law still applies to you, for example, you must hold money in trust as stated in section 87 and follow the rules for ongoing disclosure in subpart 4 of Part 3. A scheme approved under Schedule 3 cannot be registered under this part of the law. This means you have to follow different rules depending on the type of scheme you have.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091108.

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124: Overview, or

"What investment schemes must do to follow the law"

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126: Application for registration, or

"How to register a managed investment scheme with the Registrar"

Part 4Governance of financial products
Governance of managed investment products: Need to register

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

  1. A person must not make a regulated offer of a managed investment product, or accept further contributions if there has been a regulated offer of a managed investment product, unless the managed investment scheme is registered.

  2. However, a managed investment scheme may be registered even if there is no regulated offer of a managed investment product in the scheme but, in this case,—

  3. the managed investment products in the scheme are regulated products under section 41; and
    1. this Act applies accordingly (for example, in addition to this subpart, see section 87 (money for financial products must be held in trust) and subpart 4 of Part 3 (ongoing disclosure)).

      1. A scheme that is approved as a Schedule 3 scheme under Schedule 3 may not be registered under this subpart.

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