Trustees now under supervision

• Tweet

New regulations around trustee licensing will address issues around finance company failures and help protect investors, claimed Commerce Minister Simon Power.

Wednesday, August 31st 2011, 6:31AM 1 Comment

Cabinet has approved regulations to support the licensing regime for trustees and statutory supervisors, including KiwiSaver scheme trustees.

The Securities Trustees and Statutory Supervisors Act 2011 creates a licensing regime for all corporate trustees.

The Act also gives the Financial Markets Authority (FMA) the power to grant licenses, provided applicants satisfy certain conditions, such as having satisfactory monitoring systems, processes, experience, infrastructure, financial strength and ‘good character' requirements.

"The regime addresses the failures highlighted in the finance company collapses, and will help to protect investors' interests and enhance market confidence," Power said.

The Securities Trustees and Statutory Supervisors Regulations 2011 prescribe:

·         The matters that the FMA must consider when processing applications for licenses under the Act, including assessing whether an applicant meets the mandatory ‘good character' requirements.

·         The content of regular reports that license holders must provide to the FMA under the Act.

The Financial Markets Authority (Fees) Regulations Act 2011 prescribe the license application fee and the fee to vary a license under the Act.

The Securities Amendment Regulations (No.2) 2011 prescribe the matters and terms to be included in trust deeds of KiwiSaver schemes, unit trusts and debt issuers.

"These regulations will help strengthen the quality of supervision provided by trustees and statutory supervisors."

The Securities Trustees and Statutory Supervisors Act 2011 and associated regulations come into force on October 1.

Comments from our readers

Commenting is closed