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Financial Markets Conduct Act 2013

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

146: Contracting out of management functions

You could also call this:

"When you can give your management jobs to other people to do for you"

Illustration for Financial Markets Conduct Act 2013

You can give some of your management jobs to other people. This is allowed unless your governing document says you cannot do this. You can give these jobs to people who have a market services licence or to those who do not.

You must make sure these people do the jobs correctly and follow the same rules as you would. You have to watch how they do their jobs to ensure everything is done properly. If something goes wrong, you are still responsible for what happens.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091139.

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147: Duty of manager to provide reports to supervisor or FMA, or

"Managers of schemes must give regular reports to supervisors or the FMA."

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

146Contracting out of management functions

  1. A manager may, unless prohibited by the governing document, contract out to 1 or more persons (whether or not the person or persons hold a market services licence under this Act covering management of the scheme) some or all of its functions as a manager.

  2. However,—

  3. the manager must take all reasonable steps to—
    1. ensure that those functions are performed in the same manner, and are subject to the same duties and restrictions, as if the manager were performing them directly; and
      1. monitor the performance of those functions; and
      2. the contracting out does not affect the liability of the manager for the performance of those functions.