Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Role of manager

143: General duties applying in exercise of manager's functions

You could also call this:

"Managers of schemes must act honestly, fairly, and in the best interests of scheme participants."

Illustration for Financial Markets Conduct Act 2013

When you are a manager of a registered scheme, you must act honestly and in good faith. You have to make decisions that are in the best interests of the people who are part of the scheme. You must also treat all scheme participants fairly. You cannot use the information you get from being a manager to gain an advantage for yourself or someone else, or to harm the scheme participants. You must do your job as a manager according to the scheme's rules and other important documents.

If the scheme is set up under a trust deed, you have the same responsibilities as a trustee when you make decisions as a manager. You can find more information about this by looking at the Trusts Act 2019 and other related laws, such as the laws referenced in the links, links, and links.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091135.

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142: Management and administration functions of manager, or

"The person in charge of a scheme is responsible for managing it and making sure everything runs smoothly."

144: Duty of manager and investment manager to comply with relevant professional standard of care, or

"Managers must be careful and make good decisions when looking after people's money."

Part 4Governance of financial products
Governance of managed investment products: Role of manager

143General duties applying in exercise of manager's functions

A manager of a registered scheme must—
act honestly and in good faith in acting as a manager; and
in exercising any powers or performing any duties as a manager,—
1. act in the best interests of the scheme participants; and
2. treat the scheme participants equitably; and
not make use of information acquired through being the manager in order to—
1. gain an improper advantage for itself or any other person; or
2. cause detriment to the scheme participants.

The manager must also carry out the functions of a manager in accordance with the governing document, the statement of investment policy and objectives, and all other issuer obligations.
If the registered scheme is established under a trust deed, the manager has the same duties and liability in the performance of its functions as manager as it would if it performed those functions as a trustee (except to the extent that those duties are altered by or are inconsistent with this Act).

Compare

1960 No 99 ss 3(2)(c), 12(1)(c), 24(1)
SR 2009/230 Schedule 17 cl 3(1)

Notes

Section 143(1)(a): amended, on 30 January 2021, by section 168 of the Trusts Act 2019 (2019 No 38).