Governing document requirements

135 Contents of governing document for registered scheme

(1)

The governing document for a registered scheme must provide adequately for all of the following matters under the scheme:

(a)

whether or not managed investment products are transferable or redeemable and the rules applying to acquiring or disposing of the managed investment products and, if they are redeemable,—

(i)

the manner in which, and the conditions on which, interests are to be redeemed; and

(ii)

the method of calculating the price at which interests are to be redeemed; and

(b)

the rules applying to becoming a scheme participant or withdrawing from participation in the scheme (if there are any rules); and

(c)

the contributions payable, or the manner of calculating the contributions payable, and the rules applying to changing the contributions payable or the manner of their calculation; and

(d)

the methodology, or the rules applying to determining the methodology, and other rules applying to valuations of assets of the scheme and pricing of interests in the scheme; and

(e)

the rules applying to the determination and payment of benefits to scheme participants; and

(f)

the fees and expenses that can be paid out of scheme property to any manager, investment manager, administration manager, supervisor, or custodian, or the basis on which those fees and expenses are to be determined, and any rights of any of those persons to be indemnified out of scheme property (and any other matters required by section 136); and

(g)

the appointment and removal of the supervisor (unless none is required under this Part); and

(h)

the appointment and removal of the manager; and

(i)

the winding up of the scheme; and

(j)

any matters required to be contained in it by the regulations; and

(k)

any other matters (other than the matters contained in the statement of investment policy and objectives) that materially affect—

(i)

the management and operation of the scheme by the manager:

(ii)

the rights and duties of scheme participants in the scheme:

(iii)

the powers, rights, and duties of the manager and the supervisor of the scheme.

(2)

The governing document is treated as containing any provision that is implied into it by or under this Act or the KiwiSaver Act 2006.

(3)

The governing document must provide for the contents of the document that are required by this section in accordance with the frameworks and methodologies specified in notices issued by the FMA under subpart 4 of Part 9 (if any).

Compare: 1989 No 10 s 7; 2006 No 40 s 119