Financial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice (No 2) 2018

Financial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice (No 2) 2018

This notice amends the Financial Markets Conduct (Shares in Investment Companies) Designation Notice 2017

Background

On 19 May 2017, a class designation came into effect which designates certain shares in investment companies as managed investment products (MIPs). 

We have made some technical amendments to the designation to clarify its application to redeemable shares – which are classed as debt securities under the Financial Markets Conduct Act 2013 – and to appointing alternate directors. The effect of the amendments is to confirm that investment companies can issue redeemable shares, and can have a power in their constitutions for directors to appoint alternate directors, without triggering the designation.

We have also updated our information sheet to include these amendments.