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Financial Markets Conduct Act 2013

Climate-related disclosures for certain FMC reporting entities with higher level of public accountability - Overview, application, and interpretation

461S: Meaning of large manager

You could also call this:

"What it means to be a big manager of investments in New Zealand"

Illustration for Financial Markets Conduct Act 2013

You are a manager if you hold a market services licence that covers acting as a manager of registered schemes, as referred to in section 388(a). To be a large manager, the total assets of the schemes you manage must exceed $1 billion at the end of each of your last two accounting periods. This includes assets of schemes managed by other companies that work under your licence.

If you are a large manager, other managers who work under your licence are also large managers. The total assets of a scheme are usually the assets reported in the scheme's most recent audited financial statements. You can find more information about what a scheme is in this section, but basically, it means a registered scheme that is not restricted.

When a manager becomes or stops being a large manager, there are special rules that apply, especially if the manager and the scheme have different balance dates. These rules help figure out if the manager is a large manager for a particular accounting period of the scheme.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS775154.

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Part 7AClimate-related disclosures for certain FMC reporting entities with higher level of public accountability
Overview, application, and interpretation

461SMeaning of large manager

  1. For the purposes of this Part, a manager (A) that holds a market services licence that covers the service referred to in section 388(a) is a large manager in respect of an accounting period of A if, as at the balance date of each of A’s 2 preceding accounting periods, the total assets of the following schemes exceed $1 billion:

  2. all schemes for which A is manager; and
    1. all schemes for which the manager is an authorised body that provides the service of acting as a manager of a registered scheme under A’s market services licence.

      1. If A is a large manager, every manager described in subsection (1)(b) is also a large manager.

        Example

        Company A holds a licence that covers acting as a manager of registered schemes. A’s subsidiaries, B and C, also provide this service under A’s licence (as authorised bodies).

        The assets of the schemes for which A is manager total $700 million on the balance date of each of A’s 2 preceding accounting periods (the relevant balance dates).

        The assets of the schemes managed by B total a further $300 million, and the assets of the schemes managed by C total $200 million, on each of the relevant balance dates.

        The total assets therefore exceed $1 billion. A is a large manager. B and C are also large managers.

      2. Subsections (4) and (5) apply if—

      3. a manager and a scheme managed by the manager have different balance dates; and
        1. the manager becomes, or ceases to be, a large manager.

          1. If the manager was not a large manager in respect of an accounting period (AP1) but becomes a large manager in respect of the next accounting period (AP2), the manager—

          2. is not treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP1 and ends in AP2 unless paragraph (b) applies:
            1. must be treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP1 and ends in AP2 if—
              1. the manager was not the manager of the scheme at the start of that accounting period of the scheme; and
                1. the manager at the start of that accounting period of the scheme was a climate reporting entity in respect of the scheme.

                2. If the manager was a large manager in respect of an accounting period (AP3) but ceases to be a large manager in the next accounting period (AP4), the manager must be treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP3 and ends in AP4.

                3. In this section, the total assets of a scheme are—

                4. as reported in the most recent audited financial statements, prepared in accordance with generally accepted accounting practice, for the scheme; or
                  1. if there are no such statements, as calculated—
                    1. for a date as near as possible to the balance date of the manager; and
                      1. as if for the purpose of preparing financial statements for the scheme in accordance with generally accepted accounting practice.

                      2. In this section, scheme means a registered scheme (other than a restricted scheme).

                      Notes
                      • Section 461S: inserted, on , by section 8 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).