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Financial Markets Conduct Act 2013

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

134: Changes to registration as particular type of registered scheme

You could also call this:

"When a scheme's rules change, the FMA can help it become a different type or stop being one."

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority (FMA) can tell a scheme to stop being a certain type of scheme if it does not meet the rules for that type. The FMA can do this if the scheme's manager asks them to, and the supervisor or manager says it is okay. You need to know that the FMA must follow some steps before telling a scheme to stop being a certain type. The FMA must give the scheme's manager at least 10 working days' notice and say why they might do this.

The FMA can also tell a scheme to become a certain type of scheme if the manager asks and the scheme meets the rules. If the FMA makes a decision, they must tell the scheme's manager and supervisor, and the manager must then tell the scheme's participants. The FMA has rules to follow when making these decisions, which are outlined in sections 128 to 132 and subpart 6 of Part 9.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091124.

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

134Changes to registration as particular type of registered scheme

  1. The FMA may direct the removal of the registration of a registered scheme as a particular type of scheme—

  2. if the FMA is satisfied that the scheme does not meet the registration requirements for that type of scheme that apply to it under sections 128 to 132; or
    1. on the written request of the manager of the scheme, if the supervisor certifies or, if there is no supervisor, the manager certifies that—
      1. the removal has been approved by a special resolution of the scheme participants (subject to any restrictions in the governing document); or
        1. there is no material adverse effect on scheme participants from the removal.

        2. The FMA must not direct removal under subsection (1)(a) unless—

        3. the FMA gives the manager of the scheme no less than 10 working days' written notice of the following matters before it exercises the power:
          1. that the FMA may direct removal; and
            1. the reasons why it may exercise that power; and
            2. the FMA gives the manager or the manager's representative an opportunity to make written submissions on the matter within that notice period.

              1. In addition, the FMA must not direct removal under subsection (1) in the prescribed circumstances.

              2. Before making a recommendation for regulations for the purposes of subsection (2A), the Minister must be satisfied that the regulations are necessary or desirable for the purpose of enabling a recognition regime or an application regime (or both) to be implemented under subpart 6 of Part 9.

              3. The FMA may direct that a registered scheme be registered as a particular type of scheme on the written request of the manager of the scheme if the FMA is satisfied that the scheme meets the registration requirements for that type of scheme that apply to it under sections 128 to 132.

              4. A direction under subsection (1)(a) in relation to the removal of a registration as a restricted scheme must not take effect before the expiry of 6 months after the direction is made (unless the manager consents to an earlier date).

              5. If the FMA makes a direction under this section,—

              6. the FMA must notify the manager and the supervisor of the registered scheme of the direction; and
                1. as soon as practicable after being notified of the direction, the manager must notify the scheme participants of the direction.

                  Compare
                  Notes
                  • Section 134(1)(b): amended, on , by section 54 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                  • Section 134(2A): inserted, on , by section 96 of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).
                  • Section 134(2B): inserted, on , by section 96 of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).