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FMC Act

Financial Markets Conduct Act 2013 (FMC Act)

The principal NZ statute governing the issue, supervision and conduct of managed-investment schemes, securities offers, and financial-product disclosure.

The Financial Markets Conduct Act 2013 (FMC Act) is the principal piece of New Zealand legislation governing the issue of financial products to retail investors, including all managed-investment schemes. It came fully into force on 1 December 2014, replacing the Securities Act 1978 and several related statutes.

The FMC Act sets the framework for: licensing of managed-investment scheme managers, supervisors and custodians; product disclosure (PDS, SIPO, OMI, Quarterly Fund Update); the FMA's investigation and enforcement powers; misleading and deceptive-conduct rules (the "fair-dealing" provisions in Part 2); and the Disclose register run by the Companies Office on behalf of the FMA.

Together with the Financial Markets Conduct Regulations 2014 it sets the detailed rules every NZ retail managed fund operates under. Specific sections cited frequently in fund disclosure: ss129–138 (fair-dealing); s164–168 (SIPO); regs 51–54 (OMI); ss49–60 (PDS).

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