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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Management of scheme

164: Requirement for statement of investment policy and objectives

You could also call this:

"Managers of investment schemes must have a plan that explains how they invest money and what rules they follow."

Illustration for Financial Markets Conduct Act 2013

If you are a manager of a registered scheme, you must make sure there is a statement that explains the investment policy and objectives of the scheme. This statement must include information about the types of investments that can be made and any limits on those investments. It must also explain how the investment strategy is developed and changed, and how performance is measured.

You need to include details about any limits on the proportion of each type of asset that can be invested in. If there are no limits on certain matters, the statement must clearly say so.

The statement must follow the frameworks and methodologies set out in notices issued by the FMA under subpart 4 of Part 9 that apply to it, if any.

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165: Changes to statement of investment policy and objectives, or

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Part 4Governance of financial products
Governance of managed investment products: Management of scheme

164Requirement for statement of investment policy and objectives

  1. A manager of a registered scheme must ensure that there is a statement of investment policy and objectives that provides adequately for the investment policy and objectives of the scheme and for the following matters:

  2. the nature or type of investments that may be made, and any limits on those; and
    1. any limits on the proportion of each type of asset invested in; and
      1. the methodology used for developing and amending the investment strategy and for measuring performance against the investment objectives of the scheme.

        1. However, if there are no limits on a matter referred to in subsection (1)(a) or (b), the statement of investment policy and objectives must clearly disclose that fact.

        2. The statement must provide for the matters set out in this section in accordance with the frameworks and methodologies specified in notices issued by the FMA under subpart 4 of Part 9 that apply to it (if any).