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Financial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice (No 2) 2018

Page last updated: 1 Jan 2019
Name of noticeFinancial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice (No 2) 2018
Gazette Notification Date2018-12-14
Date In Force2019-01-01
LI NumberLI 2018/266
ActFinancial Markets Conduct Act 2013
TypeDesignation amendment Notice
Expiry Date2019-06-30

Financial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice (No 2) 2018

This notice amends the Financial Markets Conduct (Shares in Investment Companies) Designation Notice 2017

Background

On 19 May 2017, a class designation came into effect which designates certain shares in investment companies as managed investment products (MIPs). 

We have made some technical amendments to the designation to clarify its application to redeemable shares – which are classed as debt securities under the Financial Markets Conduct Act 2013 – and to appointing alternate directors. The effect of the amendments is to confirm that investment companies can issue redeemable shares, and can have a power in their constitutions for directors to appoint alternate directors, without triggering the designation.

We have also updated our information sheet to include these amendments.