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Financial Markets Conduct Act 2013

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

188: FMA's costs must be reimbursed from scheme

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When a temporary manager is appointed by the FMA, you need to know that the FMA's costs and expenses are paid back from the scheme's property. The FMA incurs these costs when the temporary manager is in charge. The costs are reimbursed from the scheme's property, which belongs to the registered scheme. The FMA can take action to get this money back if it is not paid. The FMA can go to court to recover the amount owed as a debt.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091197.

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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"

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189: Supervisor or FMA must take reasonable steps to arrange for new appointment, or

"Find a new boss for a scheme when the old one is temporary."

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

188FMA's costs must be reimbursed from scheme

  1. The FMA's costs and expenses incurred in connection with the holding of the appointment by a temporary manager appointed by the FMA must be reimbursed out of scheme property of the registered scheme.

  2. An amount payable under subsection (1) is recoverable by the FMA in any court of competent jurisdiction as a debt due to the FMA.