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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

434: Duties of directors and senior managers of DIMS licensee

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a director or senior manager of a DIMS licensee, you must follow certain rules. You must not use the information you get from your job to help yourself or others in a way that is not fair. You must also not use your position to hurt the people who are investing with your service.

You have a responsibility to act fairly and not use your job for personal gain. This means you cannot use your position to get an advantage for yourself or someone else, either directly or indirectly.

If you are in this role, it is your duty to make sure you are acting in the best interests of the investors and not doing anything that could harm them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091638.

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433: DIMS licensee's duties, or

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

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435: Duty of DIMS licensee to comply with professional standard of care, or

"DIMS licence holders must be careful and make good investment decisions."

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

434Duties of directors and senior managers of DIMS licensee

  1. A director or senior manager of a DIMS licensee—

  2. must not make use of information acquired through being the director or senior manager of 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; and
      2. must not make improper use of the position as a director or senior manager of the DIMS licensee to gain, directly or indirectly, an advantage for himself or herself or any other person or to cause detriment to the investors using the service.