Trustees face a tougher regime from 1 October which requires them to become licensed.
The Securities Trustees and Statutory Supervisors Act is part of the Government's efforts to improve confidence among investors in the financial sector.
Trustees have taken their share of the blame for finance firm collapses and failing to detect errant behaviour that cost investors more than $6 billion.
The Financial Markets Authority will assess the quality of trustees, and the authority's head of compliance monitoring, Elaine Campbell, says licensing will lift standards.
Ms Campbell says the authority can vary or cancel licenses, or remove the trustee
Fines of up to $200,000 can be imposed, and compensation ordered, for failing to meet obligations.
