Under the Securities Trustees and Statutory Supervisors Act 2011, securities trustees and statutory supervisors may be liable for penalties of up to $200,000 for breaches of their obligations under:
- any relevant trust deed, deed of participation, or deed of supervision
- the Securities Trustees and Statutory Supervisors Act 2011
- a court order relating to a supervised security or retirement village
- Part 5D of the Reserve Bank of New Zealand Act 1989 (which regulates non-bank deposit takers)
- the Securities Act 1978
- the Unit Trusts Act 1960
- the Retirement Villages Act 2003
- the KiwiSaver Act 2006.
- the terms of offer of a relevant security.
In addition, securities trustees and statutory supervisors may also be liable to pay compensation to investors arising out of any such breaches.
Any person acting as a securities trustee or statutory supervisor without a licence (when a licence is required under the Act) commits an offence and may be liable on summary conviction for a fine of up to $300,000.