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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

436: Limits on permitted indemnities

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a DIMS licensee, you can only be protected from liabilities by an investor if it is written in the client agreement. You can only be protected for doing your job properly, as set out in sections 433(1) and 435. This means you must follow the rules in these sections to be protected. If you have another agreement that says something different, it does not apply if it tries to give you more protection than allowed. You must make sure your client agreement says what protection you have, so everyone knows what to expect.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091640.

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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."

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

436Limits on permitted indemnities

  1. If a DIMS licensee has any rights to be indemnified by an investor for liabilities incurred in relation to the performance of the service, those rights—

  2. must be set out in the client agreement; and
    1. must be available only in relation to the proper performance of the duties under sections 433(1) and 435.

      1. No other agreement has any effect to the extent that it purports to confer a right of a kind set out in subsection (1).