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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Registration

131: Additional ongoing registration requirements for restricted schemes

You could also call this:

"Extra rules for some types of savings schemes, like KiwiSaver, to stay registered"

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If you have a restricted scheme, you must follow some extra rules to stay registered. You can find these rules in addition to the ones in section 127. Your scheme must be a KiwiSaver scheme, or a superannuation scheme, or a workplace savings scheme.

You can only let in certain people as members, like those who work for a particular employer. The people who run your scheme, called trustees, must include at least one independent trustee. This independent trustee must have a licence that covers your scheme and be independent, meaning they are not connected to the other trustees or the scheme in certain ways.

The trustees must be appointed to manage the scheme under the scheme's rules or the law. You can find out who can be a member of your scheme by looking at clause 22 of Schedule 4, where you registered your scheme. The rules about who can be a member are important, and you must follow them to stay registered.

Some people are considered immediate family members, like spouses, parents, or children. A person is independent if they are not connected to the scheme or its trustees in certain ways, like being a related company or an employee. You must make sure your scheme follows all the rules to stay registered.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091116.

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"Extra rules for registering a workplace savings scheme to help people save for retirement"

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132: Additional prescribed registration requirements for other particular prescribed types of schemes, or

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Part 4Governance of financial products
Governance of managed investment products: Registration

131Additional ongoing registration requirements for restricted schemes

  1. Every restricted scheme registered under clause 22 of Schedule 4 must meet the following registration requirements in addition to those in section 127:

  2. it must be—
    1. a KiwiSaver scheme; or
      1. a superannuation scheme or workplace savings scheme or both (in respect of all sections of the scheme); and
      2. it must—
        1. admit as members (both in its conditions of entry of scheme participants and in the way in which those conditions are applied on entry) only 1 or more of the classes of persons referred to in subsection (2); or
          1. be closed to new members; and
          2. the conditions of entry of scheme participants, or the way in which those conditions have been applied on entry, must not have been changed without the FMA's consent since the date of the scheme's registration under clause 22 of Schedule 4 in a way that expands, or is likely to expand, the classes of people who may become scheme participants; and
            1. its trustees must—
              1. include at least 1 licensed independent trustee whose licence covers the scheme and who is independent under subsection (3); or
                1. consist only of a sole corporate trustee that has at least 1 director who is a licensed independent trustee whose licence covers the scheme and who is independent under subsection (3); and
                2. the trustees of the scheme must be designated or appointed to manage the scheme under the governing document (or this Act).

                  1. The classes of persons for the purpose of subsection (1)(b)(i) are—

                  2. persons who are employed by a particular employer:
                    1. persons who are employed by a related body corporate of a particular employer:
                      1. persons who belong to a particular profession, calling, trade, occupation, or industry:
                        1. persons who belong to a particular association, society, or other entity with a definable community of interest:
                          1. persons who are immediate family members of, or wholly or partially financially dependent on, a person in 1 or more of the classes of persons described in paragraphs (a) to (d).

                            1. In this section,—

                              immediate family member, in relation to a person, means the person's spouse, civil union partner, de facto partner, parent, child, step-parent, or stepchild

                                independent means a person that—

                                1. is not a related body corporate of any other trustee of the restricted scheme; and
                                  1. is not an employer that provides access to the scheme for its employees, or an administration manager or an investment manager of the restricted scheme (or a related body corporate of any of them); and
                                    1. is not a director of, shareholder in, or an employee of any person referred to in paragraph (a) or (b); and
                                      1. is not a current scheme participant; and
                                        1. is not a representative in any capacity of an organisation (such as a trade union) that represents the interests of 1 or more scheme participants; and
                                          1. is not a representative in any capacity of an organisation that represents the interests of 1 or more employer contributors to the scheme; and
                                            1. is not a corporate trustee if none of its directors are independent under this definition.

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                                            Notes
                                            • Section 131(1)(a)(ii): amended, on , by section 53 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).