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Financial Markets Conduct Act 2013

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

151: Duty of manager to report serious financial problems

You could also call this:

"Managers must report big money problems to supervisors or the Financial Markets Authority."

Illustration for Financial Markets Conduct Act 2013

If you are a manager of a registered scheme and you find out something that makes you think you might not have enough money, you have to tell someone. You might not have enough money yourself, or the scheme you are managing might not have enough money.

You have to tell the supervisor, or if there is no supervisor, you have to tell the Financial Markets Authority (FMA), everything you know about the problem as soon as you can.

You also have to tell them what you plan to do to fix the problem and when you will do it, so they know what is happening.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091144.

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

151Duty of manager to report serious financial problems

  1. This section applies if a manager of a registered scheme becomes aware of information on the basis of which it could reasonably form the opinion that—

  2. the manager is, or is likely to become, insolvent; or
    1. the registered scheme is, or is likely to become, insolvent.

      1. The manager must, as soon as practicable,—

      2. disclose to the supervisor (or, if there is no supervisor, to the FMA) all information relevant to that matter that is in the possession or under the control of the manager (including information held by an investment manager or administration manager) and that was obtained in the course of, or in connection with, the performance of its functions as manager; and
        1. advise the supervisor (or the FMA, as the case may be) of the steps (if any) that the manager intends to take in respect of that matter and the date by which the steps are to be taken.

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