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Financial Markets Conduct Act 2013

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

187: Term, powers, and duties of temporary manager

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a temporary manager, you can keep your job until a new manager is appointed. This can happen in a few ways, such as through the scheme's rules or under the Financial Markets Conduct Act. You will have all the same powers and duties as the regular manager of the scheme, and also those of the independent trustee if that applies.

You will be able to do everything the regular manager can do, as set out in the scheme's rules or by law. However, the Financial Markets Authority, or FMA, may be able to make some changes to the scheme's rules if the supervisor agrees and the FMA thinks it won't harm the people in the scheme.

If the FMA makes any changes to the rules, they must be treated as if they were made according to the scheme's rules. When changes are made to the scheme's rules, they need to be lodged, which is a process explained in Section 141.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091196.

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186: Supervisor or FMA may make temporary appointment, or

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

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188: FMA's costs must be reimbursed from scheme, or

"The organisation in charge must get its money back from the scheme it is managing."

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

187Term, powers, and duties of temporary manager

  1. A temporary manager may hold the appointment until a substitute manager is appointed—

  2. under the governing document; or
    1. otherwise under this Act.

      1. The temporary manager has all of the powers and duties of the manager of the registered scheme and (if applicable) of the independent trustee that are conferred or imposed by the governing document or by law.

      2. However, the FMA may, in the prescribed manner (if any), amend a governing document, in so far as it applies to a temporary manager appointed by the FMA, if—

      3. the supervisor consents; and
        1. the FMA is satisfied that the change will have no material adverse effect on the interests of scheme participants.

          1. An amendment made under this section must be treated for all purposes as if it were made in accordance with the governing document.

          2. Section 141 (lodging of changes to governing document) applies to an amendment to the governing document under this section.