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28 September 2012

FMA completes licensing of Securities Trustees and Statutory Supervisors

Media Release
28 September 2012

The Financial Markets Authority (FMA) has today concluded the licensing process for Securities Trustees and Statutory Supervisors with decisions on three further applicants.

Corporate Trust Limited has been granted a licence for a term of four-and-a-half years, for all classes of securities and retirement villages. Corporate Trust Limited is a new entity that has acquired the Corporate Trust division of Perpetual Trust in a management buyout.

Perpetual Trust Limited has been granted a limited licence under the following classes for a term of 18 months:

  • A trustee of finance companies in receivership and/or in liquidation
  • A trustee in respect of unit trusts
  • A trustee for KiwiSaver

The licence in respect of unit trusts and KiwiSaver schemes is to enable the orderly transfer of these supervised interests to a duly licensed trustee and is subject to conditions that the transition of these appointments, and assets held by Perpetual Trust Limited under those appointments, is completed by 30 November 2012.

Superlife Trustee Limited was declined a licence because it could not satisfy FMA that, having regard to conditions that FMA may impose, it was capable of effectively performing the functions of a trustee. Public Trust, which was granted a licence by FMA last week, has been appointed as trustee for the Superlife KiwiSaver scheme.

Today's announcement brings the total number of successful full licensees to 10.

All trustees and statutory supervisors are required to be licensed under the Securities Trustees and Statutory Supervisors Act 2011, which came into effect on 1 October 2011.

FMA Head of Compliance Monitoring, Elaine Campbell, said the purpose of the Act is to protect the interests of security holders and residents of retirement villages.

"The new licensing regime means trustees and statutory supervisors will now be accountable for any failure to perform their functions effectively," Ms Campbell said.

Ends

Contact:
Tony Reid on 021 739 052 or [email protected]