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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of discretionary investment management services - Duties of DIMS licensee

433: DIMS licensee's duties

You could also call this:

"Duties of a DIMS licensee: being honest and fair to investors"

Illustration for Financial Markets Conduct Act 2013

If you are a DIMS licensee, you must act honestly when providing your service. You must also act in the best interests of the investors using your service and treat them fairly. This means you must do what is best for the investors, whether you are providing the service to a group of investors or just one investor.

You must not use any information you get from being a DIMS licensee to gain an advantage for yourself or someone else, or to harm the investors using your service. You have to be fair and honest with the investors.

You must provide your service according to a client agreement that follows the rules in subpart 5 and an investment authority that follows the rules in section 437.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091637.

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432A: Meaning of discretionary investment management service and related terms, or

"What it means to manage someone's investments and make decisions about their money"

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434: Duties of directors and senior managers of DIMS licensee, or

"People in charge of investment services must act fairly and not use their job for personal gain."

Part 6Licensing and other regulation of market services
Additional regulation of discretionary investment management services: Duties of DIMS licensee

433DIMS licensee's duties

  1. A DIMS licensee must—

  2. act honestly in providing the service; and
    1. in exercising any powers or performing any duties as a DIMS licensee under the client agreement or investment authority for the service,—
      1. act in the best interests of the investors using the service and treat those investors equitably (if the service is provided to a class of investors); and
        1. act in the best interests of the particular investor using the service (if the service is provided to only that investor); and
        2. not make use of information acquired through being the DIMS licensee in order to—
          1. gain an improper advantage for itself or any other person; or
            1. cause detriment to the investors using the service.

            2. A DIMS licensee must provide the service in accordance with a client agreement that complies with subpart 5 and an investment authority that complies with section 437.