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Financial Markets Conduct Act 2013

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

149: Duty of manager to report contravention or possible contravention of issuer obligations

You could also call this:

"Managers must report if they break or might break rules to the supervisor or Financial Markets Authority."

Illustration for Financial Markets Conduct Act 2013

If you are a manager of a registered scheme, you must report to the supervisor or the Financial Markets Authority (FMA) if you think you have broken or might break any rules. You have to do this as soon as you can. You need to tell the supervisor or the FMA what you have done or plan to do about the broken rule and when you did it or will do it. The FMA is like a watchdog that makes sure people follow the rules, and you can find more information about them on the Financial Markets Authority website or related links such as the Regulatory Systems (Commercial Matters) Amendment Act 2017.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091142.

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

149Duty of manager to report contravention or possible contravention of issuer obligations

  1. If a manager of a registered scheme has reasonable grounds to believe that it has contravened, may have contravened, or is likely to contravene any of its issuer obligations in a material respect, the manager must, as soon as practicable,—

  2. report the contravention or possible contravention to the supervisor (or, if there is no supervisor, the FMA); and
    1. advise the supervisor (or, if there is no supervisor, the FMA) of the steps (if any) that the manager has taken or intends to take in light of the contravention or possible contravention and the date by which the steps were taken or are to be taken.

      Notes
      • Section 149(a): amended, on , by section 56 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
      • Section 149(b): amended, on , by section 56 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).