If a company that provides financial services breaks the law, the people in charge of that company can also get in trouble. These people are called directors. If a director knows about the wrongdoing and lets it happen, or if they know about it and don’t try to stop it, they can be charged with breaking the law too. This is true even though it was the company, not the director themselves, who actually did the wrong thing.
This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.
This page was last updated on
View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1109549.
39: Exercise of powers under section 37 not affected by appeal, or
"Appeals don't stop the Registrar's actions, but court decisions must be followed"
41: Offence to make false or misleading representation, or
"It's against the law to lie or hide facts when registering as a financial service provider"
If any financial service provider that is not an individual commits an offence against this Act, every director of the provider who knowingly authorises or knowingly fails to prevent the offence also commits an offence against this Act.
