Financial Markets Conduct Act 2013

437 Requirement for agreed investment authority

(1)

A DIMS licensee must ensure that there is a written investment authority granted by the investor for the service.

(2)

The DIMS licensee must ensure that the investment authority provides adequately for the investment objectives and the scope of the investment authority, including the following matters:

(a)

the nature or type of investments that may be made, and any limits on those; and

(b)

any limits on the proportion of each type of asset invested in; and

(c)

the methodology used for developing and amending the investment strategy and for measuring performance against the investment objectives.

(3)

However, if there are no limits on the investment authority on a matter referred to in subsection (2)(a) or (b) or if the matter is capable of change without the prior written consent of the investor, the investment authority must clearly disclose that fact.

(4)

The investment authority must provide for the matters set out in this section in accordance with the frameworks and methodologies specified in notices issued by the FMA under subpart 4 of Part 9 (if any).