Financial Markets Conduct Amendment Regulations 2020

17 New regulation 106C and cross-heading inserted

After regulation 106B, insert:

Application of Trusts Act 2019 to PIE fund units

106C Application of Trusts Act 2019 to PIE fund units

(1)

This regulation applies to a managed investment scheme constituted (or to be constituted) as 1 or more trusts or as including 1 or more trusts (or both) if the interests in the scheme—

(a)

are—

(i)

PIE call fund units; or

(ii)

PIE term fund units; and

(b)

are or will be offered in reliance upon clause 21(a) or (c) of Schedule 1 of the Act.

(2)

The following provisions of the Trusts Act 2019 do not apply to any trust referred to in subclause (1):

(a)

section 39 (adviser must alert settlor to modification or exclusion of default duty):

(b)

sections 40 to 42 (exemption and indemnity clauses):

(c)

section 43 (adviser must alert settlor to liability exclusion or indemnity clause):

(d)

section 44 (court consideration of gross negligence):

(e)

sections 60 and 61 (power to determine treatment of returns and accounts):

(f)

sections 67 to 73 (exercise or performance of trustee powers and functions by others):

(g)

sections 74 to 76 (special trust advisers):

(h)

sections 81(2) and (3) and 82 to 85 (trustees’ indemnities):

(i)

section 96 (who may be appointed as trustee):

(j)

sections 121 to 123 (termination and variation of trusts).

(3)

See clause 28 of Schedule 8, which imposes governance requirements for offers made in reliance upon clause 21(a) or (c) of Schedule 1 of the Act.