Financial Markets Conduct Regulations 2014

82B Additional initial and ongoing registration requirements for passport funds

(1)

Every passport fund must meet the registration requirements specified in subclause (2) and, if applicable, subclause (3) (in addition to the requirements in section 127 of the Act).

(2)

The requirements are as follows:

(a)

the scheme is constituted or governed by a trust deed or other governing document that is interpreted and administered in accordance with New Zealand law:

(b)

the scheme must already be registered as a registered scheme:

(c)

a request under section 134(3) of the Act for a direction that the scheme be registered as a passport fund is made and is accompanied by the Part A information set out in Schedule 27 in relation to—

(i)

the scheme; or

(ii)

if subclause (3) applies, each relevant fund (and, for that purpose, Schedule 27 applies with all necessary modifications as if each relevant fund were a scheme):

(d)

that request is accompanied by all other information that is reasonably necessary to assess whether the scheme or, if subclause (3) applies, each relevant fund is likely to be operated in compliance with the passport rules and with financial markets legislation:

(e)

at the time of that request, the manager of the scheme is an eligible entity under section 3(4) of Annex 2 of the memorandum of cooperation:

(f)

the scheme is operating, and is likely to continue to be operated, in compliance with financial markets legislation:

(g)

the scheme,—

(i)

if it is not yet operating in a host economy, is likely to be operated in compliance with the passport rules; and

(ii)

if it is operating in a host economy, is operated in compliance with the passport rules and the relevant laws and regulations:

(h)

no request has been made to the FMA under section 14(1)(b) of Annex 2 of the memorandum of cooperation.

(3)

If, when interests in the scheme are offered in a host economy, the investment options that may be selected by investors in the host economy are or will be limited to options that involve 1 or more (but not all) specified funds in the scheme, subclause (1)(g) does not apply. Instead, the following requirements must be met:

(a)

each relevant fund,—

(i)

if the scheme is not yet operating in the host economy, is likely to be operated in compliance with the passport rules; and

(ii)

if the scheme is operating in a host economy, is operated in compliance with the passport rules and the relevant laws and regulations:

(b)

the manager’s licence is or will be subject to a condition imposed under regulation 199A.

(4)

In considering whether a relevant fund is likely to operate or is operating in compliance with the passport rules and the relevant laws and regulations, those rules, laws, and regulations apply with all necessary modifications as if the relevant fund were a scheme.

(5)

In this regulation and regulation 63B,—

relevant fund means a specified fund referred to in subclause (3) in respect of which an investment option may be selected by investors in a host economy

relevant laws and regulations means the laws and regulations (as defined in paragraph 4.1(f) of the memorandum of cooperation) of each host economy in which interests in the scheme are or will be offered.

Regulation 82B: inserted, on 14 June 2019, by regulation 9 of the Financial Markets Conduct (Asia Region Funds Passport) Amendment Regulations 2019 (LI 2019/101).