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Financial Markets Conduct Act 2013

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

145: Duties of directors and senior managers of manager

You could also call this:

"People in charge of companies must be fair and not use their job to help themselves or hurt others."

Illustration for Financial Markets Conduct Act 2013

If you are a director or senior manager of a company that manages a registered scheme, you have certain duties. You must not use the information you get from your job to get an advantage for yourself or someone else that is not fair. You also must not use your position to get an advantage or to harm the people who are part of the scheme. This means you cannot do things that would help you or someone else, or hurt the scheme participants, just because of your job. You can find more information about this by looking at the Financial Markets Conduct Act 2013 and similar laws, such as s 26 of a previous act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091138.

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

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146: Contracting out of management functions, or

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

145Duties of directors and senior managers of manager

  1. A director or senior manager of a manager of a registered scheme—

  2. must not make use of information acquired through being the director or senior manager of the manager in order to—
    1. gain an improper advantage for himself or herself or any other person; or
      1. cause detriment to the scheme participants; and
      2. must not make improper use of the position as a director or senior manager of the manager to gain, directly or indirectly, an advantage for himself or herself or any other person or to cause detriment to the scheme participants.

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