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Financial Markets Conduct Act 2013

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

186: Supervisor or FMA may make temporary appointment

You could also call this:

"The supervisor or a government group can choose a temporary boss for a scheme if the regular boss is missing."

Illustration for Financial Markets Conduct Act 2013

If a scheme does not have a manager, the supervisor or the Financial Markets Authority (FMA) must appoint a temporary manager. You need to know that this temporary manager will fill the vacancy until a new manager can be appointed. The temporary manager must meet certain requirements, which can be found in section 127(1)(c) and (e) if the supervisor makes the appointment.

The FMA can appoint a temporary manager if the supervisor has not done so, or if it is an urgent matter. You should look at the rules to see when the FMA can make this appointment. The FMA can also appoint someone who does not meet the usual requirements, and this will not cause any problems with the scheme's registration.

If the FMA appoints a temporary manager, you can find more information about the rules they must follow in section 127(1)(c) and (e) or section 131(1)(d). The FMA's appointment will not affect the scheme's registration, even if the temporary manager does not meet all the requirements, as stated in section 388.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091194.

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

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187: Term, powers, and duties of temporary manager, or

"What a temporary manager can and can't do while in charge"

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

186Supervisor or FMA may make temporary appointment

  1. This section applies if a registered scheme does not, for any reason, have a manager or (in the case of a restricted scheme) a licensed independent trustee.

  2. The supervisor or the FMA must appoint a person (the temporary manager) to fill the vacancy in the office until a substitute appointment may be made under the governing document.

  3. That person must be,—

  4. if the appointment is by the supervisor, a person who meets the requirements in section 127(1)(c) and (e):
    1. if the appointment is by the FMA, a person whom the FMA considers appropriate (but who need not be a person who meets the requirements in section 127(1)(c) and (e) or (in the case of an independent trustee) section 131(1)(d)).

      1. However, the FMA may act under this section only if—

      2. it is satisfied that the supervisor has had a reasonable opportunity to act under this section but has not done so; or
        1. it is satisfied that it is necessary as a matter of urgency for the FMA to do so and it is not reasonably practicable to wait for the supervisor to do so; or
          1. the supervisor requests the FMA to act; or
            1. there is no supervisor.

              1. If the FMA appoints a person who does not meet the requirements of section 127(1)(c) and (e) or 131(1)(d), that person does not contravene section 388, and the scheme does not fail to meet those registration requirements, as a result of that appointment.

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