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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Governing document requirements

138: Effect of governing document

You could also call this:

"What happens when the scheme's rules conflict with the law"

Illustration for Financial Markets Conduct Act 2013

If you have a registered scheme, it has a governing document that outlines the rules. You need to know that this document does not apply if it goes against the Financial Markets Conduct Act 2013, its regulations, or any rules that are automatically part of it because of the Act or regulations. This means that if there is a conflict, the Act, regulations, or implied terms will override the governing document.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091129.

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137: Governing document must be legally enforceable, or

"The rules of a scheme must be written in a way that they can be enforced by law."

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139: Changes to governing document, or

"How to make changes to an important document that guides a financial scheme"

Part 4Governance of financial products
Governance of managed investment products: Governing document requirements

138Effect of governing document

  1. A governing document for a registered scheme has no effect to the extent that it contravenes, or is inconsistent with, this Act, the regulations, or any term implied into it by this Act or the regulations.