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Financial Markets Conduct Act 2013

Governance of financial products - Intervention in debt securities offered under regulated offer or registered schemes - Powers to obtain court orders to intervene

212: Initial steps in winding up of registered scheme

You could also call this:

"What to do first when closing a registered investment scheme"

Illustration for Financial Markets Conduct Act 2013

If you are winding up a registered scheme, the supervisor or manager must take some initial steps. They have 10 working days to give a copy of any order or resolution to the FMA. They also need to give a copy of any order or resolution to the Commissioner of Inland Revenue if it is a KiwiSaver scheme or a complying superannuation fund. You can find more information about what happens when the Commissioner of Inland Revenue gets this notice by looking at sections 50 to 52 of the KiwiSaver Act 2006 and subpart 3 of Part 2 of that Act.

If the scheme is a KiwiSaver scheme or a complying superannuation fund, the supervisor or manager must also give the Commissioner of Inland Revenue the name, tax file number, and address of each member of the scheme. The supervisor or manager must follow these steps, or they might commit an offence and have to pay a fine of up to $50,000. You can find more information about this offence by looking at subpart 5 of Part 8.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091232.

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211: Court power to order winding up of scheme, or

"The court can close down a scheme if it's not working properly or can't pay its debts."

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213: Winding-up report, or

"What happens when a scheme is closed: final reports and asset distribution"

Part 4Governance of financial products
Intervention in debt securities offered under regulated offer or registered schemes: Powers to obtain court orders to intervene

212Initial steps in winding up of registered scheme

  1. If a registered scheme is to be wound up, the supervisor or (if there is no supervisor) the manager must, within 10 working days after a winding-up resolution or an order by the court that the scheme be wound up is made,—

  2. give a copy of any order or resolution to the FMA; and
    1. in the case of a KiwiSaver scheme or a complying superannuation fund,—
      1. give a copy of any order or resolution to the Commissioner of Inland Revenue; and
        1. give notice to the Commissioner of Inland Revenue of the name, tax file number, and address of each member of the registered scheme.

        2. See sections 50 to 52 of the KiwiSaver Act 2006 (which set out the effect of notice to the Commissioner of Inland Revenue in relation to members of a KiwiSaver scheme) and subpart 3 of Part 2 of that Act (which relates to the transfer of members’ interests to another KiwiSaver scheme).

        3. A supervisor or manager that contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $50,000.

        4. The offence in this section is an infringement offence (see subpart 5 of Part 8).

        Compare
        Notes
        • Section 212(1): amended, on , by section 62(1) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
        • Section 212(3): amended, on , by section 62(2) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).