Trustee Companies Amendment Act 2002

1: Title
1: This Act is the Trustee Companies Amendment Act 2002.
2: In this Act, the Trustee Companies Act 1967 the principal Act
2: Commencement
1: This Act comes into force on the day after the date on which it receives the Royal assent, except for section 5
2: Section 5
3: Administration by trustee company of benefit fund
Section 15(3) $4,000 $40,000, or such higher amount as is prescribed by regulations,
4: Sale of goods by auction
Section 27 $500 $5,000, or such higher amount as is prescribed by regulations,
5: New
sections 32 32A
1: The principal Act is amended by repealing section 32
32: Reimbursement of expenses
1: A trustee company may reimburse itself out of a Group Investment Fund for all reasonable expenses incurred by it in the management or administration of the Fund.
2: A trustee company must make such initial disclosure and ongoing disclosure of any reimbursement of expenses as is prescribed by regulations made under this Act.
32A: Management fees
1: Subject to subsection (2) management fee
2: A trustee company may charge, demand, receive, or retain a management fee in respect of any estate money invested in a Group Investment Fund only if—
a: it makes initial disclosure to persons with a present interest in that money in accordance with regulations made under this Act; or
b: regulations made under this Act dispense with the requirement for initial disclosure; or
c: an investment statement in relation to the investment of that money in the Fund has been issued in accordance with the requirements of sections 33 and 37A of the Securities Act 1978
3: A trustee company must make ongoing disclosure of any management fee charged or retained in accordance with regulations made under this Act.
4: The ongoing disclosure must be made at the time of the issue by the trustee company of the financial statements of the estate in question, or at such other time as may be prescribed by the regulations.
5: In this section, estate money
2: Subsections (3) to (5) existing funds disclosure regulations
3: Nothing in section 32
4: A trustee company may not, however, charge, demand, receive, or retain any management fees under section 32A
a: section 32A(2)(c) Securities Act 1978
b: the disclosure regulations dispense with the requirement for initial disclosure of management fees.
5: The making of initial disclosure in respect of any existing funds does not authorise the charging of a management fee in relation to services rendered in respect of those existing funds during any period prior to the date of the initial disclosure, except as otherwise provided in the disclosure regulations.
6: Power of trustee companies to elect to administer small estates without grant of administration
1: Section 36(1) $100,000 $120,000, or such higher amount as is prescribed by regulations,
2: Section 36(7) $120,000 $150,000, or such higher amount as is prescribed by regulations,
7: Elections in respect of unadministered balance of an estate
1: Section 37(1) $100,000 $120,000, or such higher amount as is prescribed by regulations,
2: Section 37(4) $120,000 $150,000, or such higher amount as is prescribed by regulations,
8: New
section 47A The principal Act is amended by inserting in Part V section 48
47A: Regulations
1: The Governor-General may by Order in Council make regulations prescribing—
a: amounts for the purposes of sections 15(3), 27, 36(1), 36(7), 37(1), and 37(4)
b: for the purposes of any initial disclosure or ongoing disclosure of expenses and management fees in relation to a Group Investment Fund required by sections 32 and 32A
i: the persons to whom the disclosures must be made; and
ii: when they must be made; and
iii: the information to be disclosed:
c: such other matters as may be contemplated by or necessary or desirable for the purposes of this Act.
2: Regulations made under subsection (1)(b)
a: prescribe different disclosure requirements for different classes of investment or fund or investor:
b: dispense with disclosure requirements in appropriate cases, whether because of the temporary nature of an investment or for other good reason, and specify conditions to which any dispensation from disclosure requirements may be subject:
c: specify the consequences of any failure to disclose or late disclosure (which may include a prohibition on the charging or reimbursing of any fees or expenses until disclosure is made):
d: prescribe acceptable manners of notification, and prescribe when notification will be treated as having been received:
e: make special provision in relation to existing funds within the meaning of section 5(2) of the Trustee Companies Amendment Act 2002