Fund managers
In general terms, a MIS pools money from a number of investors who rely on the investment expertise of the scheme manager. The definition in the Act (section 9) is broad and includes collective investment schemes, and most schemes involving participatory securities under the Securities Act 1978. These schemes can be structured in different ways and may invest in a wide range of investments. They can be open-ended (offered continuously) or close-ended (more equity-like). Examples include:
See our transition information sheets below for MIS managers. These provide an outline of the transition timeline and examples of the key activities and indicative timings for each step of the transition.
You must be registered on FSPR before you apply for a licence.
You need a licence if you are the appointed or designated manager of a non-restricted and registered MIS. Specifically, you need a licence if you intend to:
We have granted some compliance obligations exemptions as below:
To become a licensed MIS manager you'll have to meet and maintain certain minimum standards. The key standards in the Act (section 396) include:
There will also be other important requirements. You can find out more about the minimum licensing standards and conditions in our licensing guide.
Licensees obligations include notifying the FMA of certain events and providing us with information. All notifications should be emailed to the FMA at compliance@fma.govt.nz, noting the relevant obligation in the subject line of your email. You can notify us when a new director or senior manager is appointed by completing a notification form.
In your application you'll need to demonstrate how you can meet the minimum standards and conditions for your licence - or ask us for a limit or variation using the forms below. This is very important because when a licence is granted, they contain conditions that support your licensee obligations. They include conditions imposed by the FMC Act, the regulations, and any conditions imposed by the FMA.
Licences are issued under the FMC Act. Should you wish to reference your licence and the authority under which it is granted on your marketing material including; websites, business cards, brochures or letterhead please use the following:
For licences without restrictions:
[Name of licence holder as on licence] is a licensed manager of registered schemes or
[Name of licence holder as on licence] is licensed under the Financial Markets Conduct Act 2013 as a manager of registered schemes.
For licences with restrictions:
[Name of licence holder as on licence] is a licensed manager of [type of scheme eg registered forestry] schemes or
[Name of licence holder as on licence] is a licensed to manage the [name scheme] scheme or
[Name of licence holder as on licence] is licensed under the Financial Markets Conduct Act 2013 as a manager of [type of scheme eg registered forestry] schemes or
[Name of licence holder as on licence] is licensed under the Financial Markets Conduct Act 2013 to manage the [name of scheme] scheme.
Your marketing material must not refer to your licence as an FMA licence.
A statement of investment policy and objectives (SIPO) is a document that sets out the investment governance and management framework, philosophy, strategies and objectives of a managed investment scheme and its investment funds or portfolios. Under the FMC Act, all managers must ensure there is a SIPO for each MIS they manage. Except in prescribed circumstances, you must also register the SIPO with the Registrar, and must lodge any changes to the SIPO with the Registrar.
As a licensed MIS provider you'll have other ongoing obligations. For example, you must:
New Zealand, Australia, Japan, Korea and Thailand are members of an arrangement called the Asia Region Funds Passport. The passport allows a managed fund based in one country to be offered more easily to investors in other participating countries. The passport arrangements are set out in a Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport (MoC).
If you want to offer interests in a New Zealand registered MIS into another passport country you will first need to apply to the FMA under s 134(3) of the FMC Act for the scheme to be registered as a passport fund. For further information see here.
The FMC Act sets out minimum compliance standards of behaviour for people operating in the financial markets.
It prohibits:
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) imposes several obligations:
The FMA supervises designated business groups (DBGs) and reporting entities listed in Section 130 of the Act. See more.
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.
Information sheet: Reporting duties under Part 4 of the FMC Act
This guidance note outlines how we expect managers of managed investment schemes and their supervisors to approach SIPOs under Part 4 of the FMC Act.
Guidance note: Statements of Investment Policy and Objectives under the FMC Act
Also, see our Information sheet on Reporting SIPO limit breaks