Financial Markets Conduct Act 2013

438 Action that must be taken on limit breaks

(1)

This section applies to a DIMS licensee if there is a material breach of any limits under an investment authority referred to in section 437 on either of the following (a limit break):

(a)

the nature or type of investments that may be made:

(b)

the proportion of each type of assets that may be invested in.

(2)

If this section applies, the DIMS licensee must report the limit break to the FMA in the prescribed circumstances and in the prescribed manner.

(3)

Whether or not a limit break is material must be determined in accordance with the frameworks and methodologies specified in notices issued by the FMA under subpart 4 of Part 9 (if any).