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Financial Markets Conduct Act 2013

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

185: Removal of manager of registered scheme

You could also call this:

"When a manager of a scheme is removed or stops being in charge"

Illustration for Financial Markets Conduct Act 2013

If you are a manager of a registered scheme, you stop being the manager if the supervisor decides it is best for the scheme participants and tells you in writing. You also stop being the manager if the scheme participants vote to remove you. If you are an independent trustee of a restricted scheme, you stop being the manager if your licence expires or is cancelled under Part 6, or if the FMA removes you because you no longer meet the requirements in section 131(1)(d).

You stop being the manager if a court decides to replace you under section 209, or if you resign or are removed according to the scheme's rules. However, some of these rules do not apply to restricted schemes.

If you are a licensed independent trustee, you cannot resign unless all your tasks are done, or another licensed trustee takes your place, or a court agrees. You also cannot be removed without the FMA's consent.

When you stop being a manager, you and anyone helping you must stop all scheme activities unless the supervisor says it is okay.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091193.

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"Rules for changing scheme managers apply to you if you manage a registered scheme"

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

185Removal of manager of registered scheme

  1. A manager of a registered scheme ceases to hold that office if—

  2. the manager is removed by written direction of the supervisor after the supervisor certifies that it is in the best interests of scheme participants that the manager be removed; or
    1. the manager is removed by a special resolution of the scheme participants; or
      1. in the case of an independent trustee of a restricted scheme,—
        1. the trustee's licence expires or is cancelled under Part 6; or
          1. the trustee is removed by the FMA if it is satisfied that the trustee no longer meets the requirements in section 131(1)(d); or
          2. the manager is substituted by the court under section 209; or
            1. the manager is otherwise removed or resigns in accordance with the governing document.

              1. Subsection (1)(a) and (b) do not apply to a restricted scheme.

              2. However, a licensed independent trustee may not—

              3. be removed or resign under subsection (1)(e) unless—
                1. all functions and duties of the position have been performed; or
                  1. another licensed independent trustee has been appointed, and accepted the appointment, in its place; or
                    1. the court consents:
                    2. (despite anything in the governing document) be removed under subsection (1)(e) without the FMA's consent.

                      1. If a manager ceases to hold office under subsection (1), the manager and any delegate of the manager must immediately desist from all activities relating to the registered scheme unless the supervisor agrees to the contrary.

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