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Financial Markets Conduct Act 2013

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

193: Change of supervisor

You could also call this:

"What happens when a supervisor of a scheme is removed or stops their job"

Illustration for Financial Markets Conduct Act 2013

If you are a supervisor of a registered scheme, you stop being the supervisor in certain situations. You stop being the supervisor if the Financial Markets Authority removes you because the manager and you no longer meet the requirements in section 127(1)(e). You also stop being the supervisor if the Financial Markets Authority or the issuer removes you under Part 2 of the Financial Markets Supervisors Act 2011, or if the scheme participants remove you by a special resolution, or if you are removed or resign according to the scheme's rules.

If the scheme participants or the governing document remove or you resign as the supervisor, all your tasks must be finished, or another licensed supervisor must be appointed, or the court must agree. The manager cannot remove you without the Financial Markets Authority's consent, even if the scheme's rules say they can.

You must follow these rules when a supervisor stops being the supervisor of a registered scheme.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091207.

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

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194: Lodging of notice of change of supervisor, or

"Tell the Registrar when your scheme gets a new supervisor"

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

193Change of supervisor

  1. The supervisor of a registered scheme ceases to hold that appointment (subject to subsection (2)) if the supervisor—

  2. is removed by the FMA if it is satisfied that the manager and the supervisor no longer meet the requirements in section 127(1)(e) (registration requirements); or
    1. is removed by the FMA or the issuer under Part 2 of the Financial Markets Supervisors Act 2011; or
      1. is removed by a special resolution of the scheme participants; or
        1. is removed or resigns in accordance with the governing document.

          1. However, a supervisor may not—

          2. be removed or resign under subsection (1)(c) or (d) unless—
            1. all functions and duties of the position have been performed; or
              1. another licensed supervisor has been appointed, and accepted the appointment, in its place; or
                1. the court consents:
                2. (despite anything in the governing document) be removed by the manager under subsection (1)(d) without the FMA's consent.

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