Independent trustees

Page last updated: 31 March 2021

Who needs to comply

You'll need a licence if you are appointed as an independent trustee of a restricted KiwiSaver scheme or a workplace superannuation or legacy scheme.

Every restricted managed investment scheme must have at least one licensed independent trustee. They must meet the definition of independent in the Act (section 131).

Licensing and registration

To ensure your application runs as smoothly as possible, follow the steps below:

Review the licensing guides below as they contain all the information you need to complete and submit your application.
- Licensing Guide Part A contains information about the licensing process and includes many FAQs you might have and explains how to use our online application form. Download the licensing guide Part A: How do I apply for a licence? PDF, 510KB.
- Licensing Guide Part B contains all the specific questions you’ll be asked and the minimum standards you’ll need to show you meet. It also details the information and supporting documents you’ll need to provide when you submit your application. Download the licensing guide Part B: Independent Trustee PDF, 790KB.

Read the standard conditions for licensing to fully understand your obligations.
1. Download the Standard Conditions for individualsPDF, 615KB.
2. Download the Standard Conditions for corporatesPDF, 650KB.
Check your application against our licensing checklist prior to submitting your licence
Contact fmcapplications@fma.govt.nz if you have questions

Costs

The fee payable to the FMA when you apply for a new FMC Act licence for an Independent trustee of a restricted scheme is $2,139 (excl. GST). The fee includes 15 hours of assessment hours.

We may change an additional fee at the FMA hourly rate where our assessment of an application exceeds the included number of hours. If an additional fee is changed for your application, we will let you know in advance and provide you with a reason for this. We may also invoice you for any costs of external advice or assistance.

Obligations

Licensees have a number of obligations, in addition to the minimum standards and standard conditions set out in their licence. These 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.

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Minimum standards

To become a licensed independent trustee you’ll have to meet and maintain certain minimum standards.

The key standards in the Act (section 396) include:

You must be a fit and proper person for the role of independent trustee.
You or your business must be capable of performing the service effectively and in keeping with your licence conditions.
We must have no reason to think you’re likely to contravene your licensee obligations.

There are other important requirements. You can find out more about the minimum licensing standards and conditions in our licensing guide.

Standard conditions

If we grant you a licence it will contain conditions that support your market services licensee obligations. These include conditions imposed by the FMC Act and regulations, as well as conditions imposed by us.

Conditions for individuals and corporates

Find out more about the conditions for

In your application, you’ll need to demonstrate that you can meet these conditions – or ask us for a limit or variation in your licence.

Other obligations

All licensed independent trustees have obligations.

For example you must:

Meet the relevant professional standard of care.
Monitor your compliance, identify material changes of circumstance, and meet reporting obligations.
Notify us when a new director or senior manager is appointed by completing a declaration form.

There will also be a number of other important obligations.

AML/CFT

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) imposes several obligations:

You must provide a written risk assessment of the money laundering and financing of terrorism activity you could expect in the course of running your business.
You are required to implement an anti-money laundering and countering financing of terrorism programme that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism.
You are required to appoint a compliance officer to administer and maintain your programme.
You are required to perform due diligence processes on your customers. This includes customer identification and verification of identity.
You are required to report suspicious transactions.

The FMA supervises designated business groups (DBGs) and reporting entities listed in Section 130 of the Act.