1. Compliance
  2. Fund managers
  3. Your obligations
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Fund Managers

Your 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. 

Minimum standards

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:

  • Your directors and senior managers (current or proposed) must be fit and proper for their positions
  • 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 will also be other important requirements. You can find out more about the minimum licensing standards and conditions in our licensing guide.

Other obligations

As a licensed MIS provider you'll have obligations. For example you must:

  • prepare a statement of investment policy and objectives (SIPO) for the scheme that reflects its investment policy and objectives
  • register your scheme before you make a regulated offer, and keep the registration up-to-date
  • ensure scheme property is held by the supervisor or another independent custodian
  • hold your investor's money on trust
  • carry out functions in keeping with the governing document, SIPO, and your other issuer obligations
  • correct material pricing errors or non-compliance with MIS pricing methodology, report these to your supervisor, and take any other steps required
  • monitor your compliance, identify material changes of circumstance, and meet reporting obligations.

There is also a number of other important obligations.

Marketing yourself as licensed manager of a registered scheme

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.

Standard conditions

If we grant you a licence it will contain conditions that support your market services licensee obligations. These will include conditions imposed by the FMC Act and regulations, as well as conditions imposed by us. Find out more about the standard conditions for managed investment schemes.

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.

Find out more about:

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