Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Cancellation of registration

195: Cancellation of registration

You could also call this:

"What happens when a scheme's registration is cancelled by the Financial Markets Authority"

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority (FMA) can cancel a scheme's registration if you do not meet the requirements under section 127. The FMA can also cancel a scheme's registration if they think the scheme has no participants. You can ask the FMA to cancel a scheme's registration if you are the manager, and the supervisor or manager certifies that the cancellation has been approved or will not hurt the participants.

If the FMA wants to cancel a scheme's registration, they must give the manager at least 20 working days' notice and tell them why. The manager can then make written submissions on the matter. The FMA must not direct cancellation in certain circumstances.

When the FMA cancels a scheme's registration, they must notify the manager and supervisor, and the manager must then notify the scheme participants. Instead of cancelling a scheme's registration, the FMA can apply for an order to wind up the scheme under section 211. The FMA can also make rules about when they can cancel a scheme's registration, which must be necessary for implementing a recognition or application regime under subpart 6 of Part 9.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091212.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

194: Lodging of notice of change of supervisor, or

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

Next

196: Registrar must remove scheme from register on cancellation of registration, or

"Registrar must remove a scheme from the list when its registration is cancelled"

Part 4Governance of financial products
Governance of managed investment products: Cancellation of registration

195Cancellation of registration

  1. The FMA may direct that the registration of a registered scheme be cancelled—

  2. if satisfied on reasonable grounds that the scheme does not meet the registration requirements under section 127; or
    1. if the FMA has reasonable cause to believe that the scheme has no scheme participants; or
      1. on the written request of the manager of the scheme (subject to subsection (4)), if the supervisor certifies or, if there is no supervisor, the manager certifies that—
        1. the cancellation has been approved by a special resolution of the scheme participants (subject to any restriction in the governing document); or
          1. there is no material adverse effect on the scheme participants from the cancellation; or
          2. if the scheme has been wound up or dissolved or has otherwise ceased to exist.

            1. The FMA must not direct cancellation under subsection (1)(a) or (b) unless—

            2. the FMA gives the manager of the scheme no less than 20 working days' written notice of the following matters before it exercises the power:
              1. that the FMA may direct cancellation; and
                1. the reasons why it may exercise that power; and
                2. the FMA gives the manager or the manager's representative an opportunity to make written submissions on the matter within that notice period.

                  1. In addition, the FMA must not direct cancellation under subsection (1) in the prescribed circumstances.

                  2. Before making a recommendation for regulations for the purposes of subsection (2A), the Minister must be satisfied that the regulations are necessary or desirable for the purpose of enabling a recognition regime or an application regime (or both) to be implemented under subpart 6 of Part 9.

                  3. If the FMA makes a direction under this section,—

                  4. the FMA must notify the manager and the supervisor of the registered scheme of the direction; and
                    1. as soon as practicable after being notified of the direction, the manager must notify the scheme participants of the direction.

                      1. The FMA may, instead of cancelling a scheme's registration on the request of the manager under this section, exercise its rights to apply for an order winding up the scheme under section 211 (power to order winding up).

                      Compare
                      Notes
                      • Section 195(1)(c): amended, on , by section 61 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                      • Section 195(2A): inserted, on , by section 97 of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).
                      • Section 195(2B): inserted, on , by section 97 of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).