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Financial Markets Conduct Act 2013

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

191: Statutory novation of rights, obligations, and liabilities of former manager

You could also call this:

"What happens to a scheme's old manager's jobs and responsibilities when a new manager takes over"

Illustration for Financial Markets Conduct Act 2013

When the manager of a registered scheme changes, you need to know what happens to their rights and responsibilities. The new manager takes on the rights, obligations, and liabilities of the former manager in relation to the scheme. This means the new manager is now responsible for the scheme.

If the former manager was paid to manage the scheme, they still get to keep the right to be paid for the work they did before they stopped being the manager. The former manager also keeps any rights or responsibilities they had as a participant in the scheme. They also keep any liabilities that they could not have been reimbursed for from the scheme's property.

This change is subject to any orders made by the court under section 209, which means the court can make decisions that affect this change.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091204.

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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."

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192: Lodging of notice of changes to manager, or

"Telling the Registrar about a new manager of a scheme"

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

191Statutory novation of rights, obligations, and liabilities of former manager

  1. If the manager of a registered scheme changes, the rights, obligations, and liabilities of the former manager in relation to the scheme become the rights, obligations, and liabilities of the new manager.

  2. Despite subsection (1), the following rights, obligations, and liabilities remain rights, obligations, and liabilities of the former manager:

  3. any right of the former manager to be paid fees for the performance of its functions, or to be indemnified for liabilities or expenses it incurred, before it ceased to be the manager of the scheme; and
    1. any right, obligation, or liability that the former manager had as a scheme participant; and
      1. any liability for which the former manager could not have been indemnified out of the scheme property if it had remained the scheme's manager.

        1. This section is subject to any order of the court under section 209.