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Financial Markets Authority Act 2011

Preliminary provisions

4: Interpretation

You could also call this:

“Understanding key terms in the Financial Markets Authority Act”

This section explains important terms used in the Financial Markets Authority Act 2011. Here’s what you need to know:

The Financial Markets Authority (FMA) is the organisation established by this Act to oversee New Zealand’s financial markets.

Financial markets include places where people buy and sell financial products and services in New Zealand.

Financial markets participants are people or companies involved in financial markets. This includes those who:

  • Need to be registered or licensed under financial laws
  • Offer financial products to the public
  • Manage investments or look after financial products for others
  • Are listed on a stock exchange
  • Run important financial systems
  • Report financial information

The Act also defines other key terms like financial products, financial services, and who is considered involved in breaking financial laws.

Law enforcement agencies that work with the FMA include government departments, the police, and other regulators like the Commerce Commission and the Reserve Bank.

The Minister responsible for this Act is appointed by the Prime Minister.

If the government wants to exclude certain people from being considered financial markets participants, they can do this through an official order.

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 It might be out of date or be missing some parts.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=DLM3231030.

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3: Purpose of this Act, or

"This Act creates a new group to watch over money matters in New Zealand"

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5: Act binds the Crown, or

"The government must follow this law just like everyone else"

Part 1 Preliminary provisions

4Interpretation

  1. In this Act, unless the context otherwise requires,—

    associate member means a member appointed under section 11(1)

      chairperson means the chairperson of the board of the FMA

        dealing, in relation to financial products, has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

          document has the same meaning as in section 4 of the Evidence Act 2006

            financial markets—

            1. means the financial markets in New Zealand; and
              1. includes—
                1. markets in New Zealand for the provision of financial services; and
                  1. the capital markets in New Zealand

                  financial markets legislation means the Acts listed in Schedule 1 and the enactments made under those Acts

                    financial markets participant—

                    1. means a person who is, or is required to be, registered, licensed, appointed, accredited, or authorised under, or for the purposes of, any of the Acts listed in Part 1 of Schedule 1 or any of the enactments made under those Acts (or would be required to be so registered, licensed, appointed, accredited, or authorised but for an exemption granted or provided by or under any of those Acts); and
                      1. includes any of the following:
                        1. a person who participates in a regulated offer as an issuer or offeror:
                          1. a person who participates in an offer of financial products as an issuer or offeror and who is required to give a disclosure document under clause 26 of Schedule 1 of the Financial Markets Conduct Act 2013:
                            1. a person who acts, in respect of regulated products, as a supervisor, a manager, an investment manager, an administration manager, a custodian, or a qualified FMC auditor (within the meaning of those terms in section 6(1) of the Financial Markets Conduct Act 2013):
                              1. a listed issuer (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013):
                                1. an operator of an FMI within the meaning of section 5 of the Financial Market Infrastructures Act 2021 (other than a pure payment system within the meaning of section 10(2) of that Act):
                                  1. a Lloyd’s managing agent (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013):
                                    1. an FMC reporting entity (within the meaning of section 451 of the Financial Markets Conduct Act 2013); and
                                      1. a climate reporting entity (within the meaning of section 461O of the Financial Markets Conduct Act 2013); and
                                      2. also includes any of the following:
                                        1. a body corporate that is related to a person referred to in paragraph (a) or (b) (within the meaning of section 12(2) of the Financial Markets Conduct Act 2013); or
                                          1. a director or senior manager of a person referred to in paragraph (a) or (b) (within the meaning of those terms in section 4 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 but applied even if the person referred to in those paragraphs is not a financial service provider); or
                                            1. a person who was previously a person referred to in any of paragraphs (a), (b), or (c)(i) or (ii), in respect of any action, event, or circumstance while the person was such a person; but
                                            2. does not include any class or classes of persons declared by the Governor-General by Order in Council not to be financial markets participants (see subsection (2))

                                              financial products has the same meaning as in section 7 of the Financial Markets Conduct Act 2013

                                                financial service has the same meaning as in section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008

                                                  FMA means the Financial Markets Authority established by Part 2

                                                    involved in a contravention has the same meaning as in section 533 of the Financial Markets Conduct Act 2013

                                                      issuer has the same meaning as in section 11(1)(b) of the Financial Markets Conduct Act 2013

                                                        law enforcement or regulatory agency means any of the following:

                                                        1. any department of State that, with the authority of the Prime Minister, is responsible for the administration of any part of the financial markets legislation:
                                                          1. the Commerce Commission:
                                                            1. the Director of the Serious Fraud Office:
                                                              1. the New Zealand Police:
                                                                1. the Registrar of Companies:
                                                                  1. the Registrar of Financial Service Providers:
                                                                    1. the Reserve Bank of New Zealand:
                                                                      1. the Takeovers Panel
                                                                        1. an accredited body (within the meaning of section 6(1) of the Auditor Regulation Act 2011)

                                                                          member—

                                                                          1. means a member of the board of the FMA referred to in section 10; and
                                                                            1. in the circumstances set out in section 12, includes an associate member

                                                                              Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

                                                                                offeror has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

                                                                                  overseas regulator means a body in another country that performs functions that correspond with, or are similar to, any of those conferred on the FMA

                                                                                    product holder has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

                                                                                      regulated offer has the same meaning as in section 41(1) of the Financial Markets Conduct Act 2013

                                                                                        regulated product has the same meaning as in section 41(2) of the Financial Markets Conduct Act 2013.

                                                                                        1. An order under paragraph (d) of the definition of financial markets participant in subsection (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                                                                                        Notes
                                                                                        • Section 4(1) dealing: inserted, on , by section 63(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) dealings in securities: repealed, on , by section 63(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (a): amended, on , by section 82 of the Auditor Regulation Act 2011 (2011 No 21).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(i): replaced, on , by section 63(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(ii): replaced, on , by section 63(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iii): replaced, on , by section 63(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iii): amended, on , by section 106(1) of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iiia): inserted, on , by section 63(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iiib): inserted, on , by section 162 of the Financial Market Infrastructures Act 2021 (2021 No 13).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iiic): inserted, on , by section 25 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(iv): replaced, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                                        • Section 4(1) financial markets participant paragraph (b)(v): inserted, on , by section 55(2) of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).
                                                                                        • Section 4(1) financial markets participant paragraph (c)(i): replaced, on , by section 63(4) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) financial markets participant paragraph (d): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                                                                        • Section 4(1) financial products: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) involved in a contravention: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) issuer: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) law enforcement or regulatory agency paragraph (i): inserted, on , by section 82 of the Auditor Regulation Act 2011 (2011 No 21).
                                                                                        • Section 4(1) offeror: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) product holder: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) regulated offer: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) regulated product: inserted, on , by section 63(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(1) securities: repealed, on , by section 63(5) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                                        • Section 4(2): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).