Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

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

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a DIMS licensee, you must be careful when making investment decisions or doing your job. You need to use the same care, diligence, and skill that a prudent person in your profession would use in the same situation. This means you must work carefully and make good decisions when investing or performing your duties.

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 It might be out of date or be missing some parts.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=DLM4091639.

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

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."

Next

436: Limits on permitted indemnities, or

"Rules about how much investors can protect people who manage their investments"

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

435Duty of DIMS licensee to comply with professional standard of care

  1. A DIMS licensee must, in exercising any power of investment or performing any duties in that capacity in relation to the service, exercise the care, diligence, and skill that a prudent person engaged in that profession would exercise in the same circumstances.