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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Dispute resolution - Miscellaneous - Pecuniary and compensatory orders for contravening wholesale certification requirement

79B: Compensation for contravention of wholesale certification requirement

You could also call this:

“Court can order payment for breaking wholesale certification rules”

If someone breaks a rule about wholesale certification, a court can make them pay a fine. The court can also order them to pay money to people who have been hurt or might be hurt because of this rule-breaking. These hurt people are called ‘aggrieved persons’.

The FMA (which is a group that looks after financial rules) or any aggrieved person can ask the court to order this payment. They need to ask within one year of when the fine was ordered.

The court can decide to order this payment even if the aggrieved persons are not part of the court case. The court can make any orders it thinks are right in these cases.

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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=DLM3080383.

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79A: Pecuniary order for contravening wholesale certification requirement, or

"Money penalty for breaking wholesale certification rules"

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Part 3 Dispute resolution
Miscellaneous: Pecuniary and compensatory orders for contravening wholesale certification requirement

79BCompensation for contravention of wholesale certification requirement

  1. If the court orders a person to pay a pecuniary penalty under section 79A in respect of the contravention of a wholesale certification requirement, the court may, in addition, order a person to pay compensation to any person who has suffered, or is likely to suffer, loss or damage as a result of the contravention (the aggrieved person).

  2. An application for orders under this section may be made by the FMA or any aggrieved person.

  3. The application must be made within 1 year of the date of the pecuniary penalty order.

  4. The court may make an order under this section whether or not any aggrieved person is a party to the proceedings.

  5. In proceedings under this section, the court may make such orders as it thinks fit.

Notes
  • Section 79B: inserted, on , by section 36 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).
  • Section 79B(2): amended, on , by section 46 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).