Ensuring financial product managers and supervisors have a clear understanding of their respective roles, and holding them to account, is central to building investor trust.
Part 4 of the FMC Act has a governance and accountability framework to achieve this goal. This framework applies to managed investment scheme (MIS) managers, debt issuers, restricted schemes and their respective supervisors or trustees.
What has changed
This accountability framework imposes statutory duties of care on supervisors and on managers of MISs. Managers of MISs must act in the best interests of investors. These general good conduct duties set the tone for the overall accountability framework and apply in addition to the more specific duties for particular circumstances. Ensuring that managers and supervisors have a clear understanding of their respective roles, and holding them to account, is central to building investor trust. Key components include:
requirements and obligations for licensed supervisors and managers of managed investment schemes, as well as issuers of debt securities and trustees of restricted schemes.
requirements for schemes to be registered and new custody obligations for registered schemes.
requirements for restricted schemes to have a Licensed Independent Trustee. Read more about the licensing of independent trustees here.
powers of intervention for supervisors and the FMA, as well as ongoing register and record-keeping duties for issuers of all regulated products.
If you are intending to launch a new KiwiSaver, superannuation, or workplace savings scheme you will need a certificate from the FMA before applying to register the scheme. See our information sheeton the FMA certification process for registration of new KiwiSaver, superannuation and workplace savings schemes to find out how to get started.
Our guidance details the key accountabilities and responsibilities under the FMC Act.
This guidance note outlines our expectations for how issuers of debt securities, managers of managed investment schemes and their supervisors should approach their governance accountabilities and responsibilities. It describes how the overarching duties of care, acting in the best interests of clients, and fair dealing set the scene for how each participant meet their governance responsibilities. It also describes how participants must interact with each other and with the FMA and addresses the need for governing documents to be effective and fit for purpose.
This information sheet outlines new reporting duties under Part 4 of the FMC Act. It includes a table showing the reporting requirements for debt issuers, MIS managers/trustees of restricted schemes, supervisors, auditors, custodians, actuaries, investment managers and administration managers.