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Financial Markets Conduct Act 2013

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

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are in charge of a registered scheme, you must take reasonable steps to find a new permanent manager. You need to follow the rules set out in the scheme's governing document to make this appointment. The new manager will replace the temporary one.

When a temporary independent trustee is in place for a restricted scheme, the trustees must take reasonable steps to appoint a new permanent licensed independent trustee. They must also follow the rules in the scheme's governing document.

If the temporary manager is appointed as the permanent manager, they are no longer appointed by the FMA for certain purposes, such as those outlined in sections 186 to 188. The permanent manager must also meet certain requirements, which are set out in section 127(1)(c) and (e) or 131(1)(d) if they apply.

You must comply with any prescribed requirements when making a new appointment under this section.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091198.

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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."

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190: Former manager must hand over records and give reasonable assistance, or

"When you're no longer in charge, you must hand over important information and help the new person in charge."

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

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

  1. The supervisor of a registered scheme or the FMA (if there is no supervisor) must take all reasonable steps to secure, in accordance with the governing document, the appointment of a person as a permanent manager in place of the temporary manager (other than a temporary independent trustee).

  2. The trustees of a restricted scheme must take all reasonable steps to secure, in accordance with the governing document, the appointment of a person as a permanent licensed independent trustee in place of the temporary independent trustee.

  3. The temporary manager may be appointed to hold the office as a permanent manager, but in this case—

  4. if the person was appointed by the FMA, the person ceases to be appointed by the FMA for the purposes of sections 186 to 188; and
    1. must meet the requirements in section 127(1)(c) and (e) or 131(1)(d) (if applicable).

      1. The supervisor or trustees must, when acting under this section, comply with the prescribed requirements (if any).