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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

446: Certain client money or property service obligations under subpart 5B apply

You could also call this:

"Rules for looking after investors' money and property apply to some financial service providers"

Illustration for Financial Markets Conduct Act 2013

If you are a DIMS licensee or a custodian of investor money or property, you must provide certain services to every investor. You have to follow the rules in sections 431ZC to 431ZH when you provide these services. When you read those sections, you should replace the words "client" with "investor" and "client money or client property" with "investor money or investor property".

You have to do this because the law says so, and it applies to you as a DIMS licensee or a custodian. This means you have to follow the same rules as anyone else who provides client money or property services.

The rules in sections 431ZC to 431ZH still apply to you, even if you are also doing other things as a DIMS licensee or a custodian.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5155271.

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

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"A guide to how financial institutions must treat you fairly and follow the law"

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

446Certain client money or property service obligations under subpart 5B apply

  1. A DIMS licensee, and a custodian of investor money or investor property under the service, must provide the custodial and other client money or property services under the service to every investor in accordance with sections 431ZC to 431ZH.

  2. Those sections apply as if every reference to a client were to the investor and every reference to client money or client property were to investor money or investor property.

  3. This section does not limit the application of those sections to a DIMS licensee or a custodian as a provider of a client money or property service.

Notes
  • Section 446: replaced, on , by section 31 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).