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Financial Markets Conduct Act 2013

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

154: Duty of supervisor to comply with professional standard of care

You could also call this:

"Supervisors of investments must be careful and make good decisions like a responsible expert would."

Illustration for Financial Markets Conduct Act 2013

If you are a supervisor of a registered scheme, you must be careful when making decisions and doing your job. You need to use the same care, diligence, and skill that a prudent person would use if they were in your position. This means you should act like a responsible and experienced supervisor would in the same situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091148.

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153: General duties applying in exercise of supervisor's functions, or

"Supervisors of schemes must act honestly, carefully, and in the best interests of scheme members."

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155: Power of supervisor to engage expert, or

"The supervisor can get expert help to check a scheme is running properly"

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

154Duty of supervisor to comply with professional standard of care

  1. The supervisor of a registered scheme must, in exercising its powers and performing its duties as a supervisor, exercise the care, diligence, and skill that a prudent person engaged in the business of acting as a licensed supervisor would exercise in the same circumstances.