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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

213: Winding-up report

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When a registered scheme is wound up, you need to know what happens next. The person in charge of the scheme must prepare final financial statements within four months. These statements must show the scheme's financial position and be audited. The person in charge must send a copy of the statements to the Financial Markets Authority, or FMA, and to every scheme participant within 20 working days after the statements have been audited. They must also tell the FMA and scheme participants how the remaining assets will be distributed.

The person in charge can distribute some of the scheme's assets before sending the final financial statements to the FMA. They must inform the FMA when the asset distribution is complete. The FMA can extend the time period for completing these tasks if needed.

If the person in charge does not follow these rules, they can commit an offence. You can see subpart 5 of Part 8 for more information about infringement offences. If they commit an offence, they can be fined up to $50,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091233.

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

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

213Winding-up report

  1. The person who was the supervisor of the relevant registered scheme or, if there was no supervisor, the person who was the manager of the relevant registered scheme immediately before the scheme was wound up—

  2. must, within 4 months after the date on which the winding up takes effect, ensure that final financial statements of the scheme, showing the financial position of the scheme as at the date on which the winding up takes effect, are prepared in accordance with generally accepted accounting practice and audited; and
    1. must, within 20 working days after the final financial statements have been audited, ensure that—
      1. a copy of those financial statements is sent to the FMA and to every person who was a scheme participant immediately before it was wound up; and
        1. the FMA and the scheme participants are advised in writing as to the manner in which the remaining assets (if any) of the scheme are to be distributed; and
        2. may make a partial distribution of assets of the scheme at any time before a copy of the final financial statements is sent to the FMA under paragraph (b) (unless prohibited by the governing document); and
          1. must inform the FMA of the date on which the distribution of the assets is completed.

            1. The FMA may, by giving notice to the relevant person, extend the time period within which a person must comply with any of the requirements set out in this section.

            2. A person that contravenes—

            3. subsection (1)(a) commits an offence:
              1. subsection (1)(b) commits an offence:
                1. subsection (1)(d) commits an offence.

                  1. A person that commits an offence under subsection (3) is liable on conviction to a fine not exceeding $50,000.

                  2. Each offence in subsection (3) is an infringement offence (see subpart 5 of Part 8).

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                  Notes
                  • Section 213(1): amended, on , by section 63 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).