Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of discretionary investment management services - Broking and custodial service performed as part of discretionary investment management service

444: Meaning of investor money and investor property

You could also call this:

"What is investor money and property in investments?"

Illustration for Financial Markets Conduct Act 2013

When you are dealing with a discretionary investment management service, you need to know what is meant by investor money. Investor money refers to money that is received under this service and is from, or on behalf of, the investor, given to a person who is not using it for their own account. You also need to understand what investor property is. Investor property is property, not including money, that is a financial product or a beneficial interest in one, or is received under the service. This property must be from, or on behalf of, the investor and given to a person who is not using it for their own account.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5155266.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

443: General duties still apply, or

"DIMS licensees must still follow the rules when doing transactions."

445: Requirements for custodian, or

"Rules to keep your investment money and property safe with a custodian"

Part 6Licensing and other regulation of market services
Additional regulation of discretionary investment management services: Broking and custodial service performed as part of discretionary investment management service

444Meaning of investor money and investor property

In this Act,—
investor money, in relation to a discretionary investment management service, means money to which the following applies:
1. the money is received under that service; and
2. the money is received from, or on account of, the investor by a person (A) (and not on A's own account)
investor property, in relation to a discretionary investment management service, means property (other than money) to which the following applies:
1. the property is a financial product, is a beneficial interest in a financial product, or is received under that service; and
2. the property is received from, or on account of, the investor by a person (A) (and not on A's own account).