Trustee Companies Amendment Act 2002

Trustee Companies Amendment Act 2002

Public Act2002 No 48
Date of assent26 November 2002

The Parliament of New Zealand enacts as follows:

1 Title
  • (1) This Act is the Trustee Companies Amendment Act 2002.

    (2) In this Act, the Trustee Companies Act 1967 is called the principal Act.

2 Commencement
  • (1) This Act comes into force on the day after the date on which it receives the Royal assent, except for section 5.

    (2) Section 5 comes into force on a day to be fixed by the Governor-General by Order in Council.

3 Administration by trustee company of benefit fund
  • Section 15(3) of the principal Act is amended by omitting the expression $4,000, and substituting the words $40,000, or such higher amount as is prescribed by regulations,.

4 Sale of goods by auction
  • Section 27 of the principal Act is amended by omitting the expression $500, and substituting the words $5,000, or such higher amount as is prescribed by regulations,.

5 New sections 32 and 32A substituted
  • (1) The principal Act is amended by repealing section 32, and substituting the following sections:

    32 Reimbursement of expenses
    • (1) A trustee company may reimburse itself out of a Group Investment Fund for all reasonable expenses incurred by it in the management or administration of the Fund.

      (2) A trustee company must make such initial disclosure and ongoing disclosure of any reimbursement of expenses as is prescribed by regulations made under this Act.

    32A Management fees
    • (1) Subject to subsection (2), a trustee company may charge, demand, receive, or retain a reasonable fee or other remuneration for services rendered by it in the management or administration of a Group Investment Fund (a management fee).

      (2) A trustee company may charge, demand, receive, or retain a management fee in respect of any estate money invested in a Group Investment Fund only if—

      • (a) it makes initial disclosure to persons with a present interest in that money in accordance with regulations made under this Act; or

      • (b) regulations made under this Act dispense with the requirement for initial disclosure; or

      • (c) an investment statement in relation to the investment of that money in the Fund has been issued in accordance with the requirements of sections 33 and 37A of the Securities Act 1978 and regulations made under that Act.

      (3) A trustee company must make ongoing disclosure of any management fee charged or retained in accordance with regulations made under this Act.

      (4) The ongoing disclosure must be made at the time of the issue by the trustee company of the financial statements of the estate in question, or at such other time as may be prescribed by the regulations.

      (5) In this section, estate money means money that is part of any property administered or held, managed, or controlled by the trustee company, whether as administrator or other trustee or as guardian, committee, manager, liquidator, receiver, agent, or attorney, or in any other capacity.

    (2) Subsections (3) to (5) apply in respect of funds (existing funds) invested in a Group Investment Fund before the date on which regulations prescribing initial disclosure requirements for funds invested in a Group Investment Fund (the disclosure regulations) come into force.

    (3) Nothing in section 32 of the principal Act prevents any reimbursement of expenses in respect of existing funds before initial disclosure has been made, except to the extent otherwise provided in the disclosure regulations.

    (4) A trustee company may not, however, charge, demand, receive, or retain any management fees under section 32A of the principal Act in respect of any existing funds until it has made initial disclosure of the fees in accordance with the disclosure regulations, except in circumstances where—

    • (b) the disclosure regulations dispense with the requirement for initial disclosure of management fees.

    (5) The making of initial disclosure in respect of any existing funds does not authorise the charging of a management fee in relation to services rendered in respect of those existing funds during any period prior to the date of the initial disclosure, except as otherwise provided in the disclosure regulations.

6 Power of trustee companies to elect to administer small estates without grant of administration
  • (1) Section 36(1) of the principal Act is amended by omitting the expression $100,000, and substituting the words $120,000, or such higher amount as is prescribed by regulations,.

    (2) Section 36(7) of the principal Act is amended by omitting the expression $120,000, and substituting the words $150,000, or such higher amount as is prescribed by regulations,.

7 Elections in respect of unadministered balance of an estate
  • (1) Section 37(1) of the principal Act is amended by omitting the expression $100,000, and substituting the words $120,000, or such higher amount as is prescribed by regulations,.

    (2) Section 37(4) of the principal Act is amended by omitting the expression $120,000, and substituting the words $150,000, or such higher amount as is prescribed by regulations,.

8 New section 47A inserted
  • The principal Act is amended by inserting in Part V, immediately before section 48, the following section:

    47A Regulations
    • (1) The Governor-General may by Order in Council make regulations prescribing—

      • (a) amounts for the purposes of sections 15(3), 27, 36(1), 36(7), 37(1), and 37(4):

      • (b) for the purposes of any initial disclosure or ongoing disclosure of expenses and management fees in relation to a Group Investment Fund required by sections 32 and 32A,—

        • (i) the persons to whom the disclosures must be made; and

        • (ii) when they must be made; and

        • (iii) the information to be disclosed:

      • (c) such other matters as may be contemplated by or necessary or desirable for the purposes of this Act.

      (2) Regulations made under subsection (1)(b) may—

      • (a) prescribe different disclosure requirements for different classes of investment or fund or investor:

      • (b) dispense with disclosure requirements in appropriate cases, whether because of the temporary nature of an investment or for other good reason, and specify conditions to which any dispensation from disclosure requirements may be subject:

      • (c) specify the consequences of any failure to disclose or late disclosure (which may include a prohibition on the charging or reimbursing of any fees or expenses until disclosure is made):

      • (d) prescribe acceptable manners of notification, and prescribe when notification will be treated as having been received:

      • (e) make special provision in relation to existing funds within the meaning of section 5(2) of the Trustee Companies Amendment Act 2002.


Legislative history

24 May 2001Introduction
1 August 2001First reading and referral to Finance and Expenditure Committee
2 November 2001Reported from Finance and Expenditure Committee (Bill 131-2)
19 November 2002Second reading, committee of the whole House, third reading