Financial Markets Supervisors Act 2011

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
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16 Decision on application for, or to vary, licence

(1)

The FMA may issue or vary a licence only if the FMA is satisfied that, having regard to any conditions imposed on the licence, the applicant is capable of effectively performing (or will, after the variation, be capable of effectively performing)—

(a)

the functions of a supervisor in respect of debt securities or registered schemes the supervision of which is covered by the licence:

(b)

the functions of a statutory supervisor in respect of retirement villages the supervision of which is covered by the licence.

(2)

Despite subsection (1), the FMA may not issue a licence unless the FMA is satisfied that the applicant meets the following requirements:

(a)

the applicant is—

(i)

a body corporate that is incorporated in New Zealand; or

(ii)

an overseas company (as defined in the Companies Act 1993) registered under that Act:

(b)

every director and senior manager of the applicant is of good character:

(c)

in the case of an applicant for a licence that covers supervision of a debt security or a registered scheme, the applicant is, or will be, registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 on and from commencing to perform the functions of a supervisor:

(d)

in the case of an applicant for a licence that covers supervision of a retirement village, the applicant complies with section 13(a) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

(3)

Before making a decision under subsection (1), the FMA must assess the following matters:

(a)

the experience, skills, and qualifications of the applicant (including, in particular, of the applicant’s directors and senior managers):

(b)

the financial resources available to the applicant:

(c)

the other resources available to the applicant:

(d)

the applicant’s procedures for ensuring that the applicant complies with the licensee obligations:

(e)

the applicant’s procedures for ensuring that,—

(i)

in the case of a licence relating to debt securities or registered schemes, issuers of those debt securities or of managed investment products in those schemes comply with the issuer obligations; and

(ii)

in the case of a licence relating to retirement villages, operators of those retirement villages comply with the operator obligations:

(f)

the applicant’s independence from issuers, or from operators, covered by the licence:

(g)

the applicant’s governance structure:

(h)

the applicant’s professional indemnity insurance:

(i)

other prescribed matters that relate to the applicant, to debt securities, registered schemes, or retirement villages the supervision of which is covered by the licence, and to issuers or operators covered by the licence:

(j)

any other matter that the FMA considers is material.

(4)

In this section,—

director has the meaning given in section 126 of the Companies Act 1993, but also includes, in the case of a body corporate that is not a company, a person (including a delegate) who occupies a position comparable to that of a director

senior manager, in relation to an applicant, means a person (including a delegate) who is not a director but occupies a position that allows the person to exercise significant influence over the management or administration of the applicant (for example, a chief executive or a chief financial officer).

Section 16(1): replaced, on 1 December 2014, by section 124(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 16(2)(c): replaced, on 1 December 2014, by section 124(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 16(2)(d): amended, on 1 December 2014, by section 124(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 16(3)(e)(i): replaced, on 1 December 2014, by section 124(4) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 16(3)(i): replaced, on 1 December 2014, by section 124(5) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).