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Financial Markets Authority Act 2011

Financial Markets Authority - Miscellaneous matters

22: Protection from liability for FMA and members and employees

You could also call this:

“FMA and its people can't be sued for doing their job unless they were really careless”

The Financial Markets Authority (FMA) and its members and employees are protected from being held responsible for their actions or inactions while doing their job. This protection applies unless they acted in bad faith or without reasonable care.

You can’t sue the FMA for things they do or don’t do while performing their duties, as long as they were trying to do their job properly. The same goes for FMA members, employees, and anyone the FMA has given authority to act on their behalf.

However, this protection doesn’t apply if someone commits certain serious crimes. These crimes include things like corruption, using official information for personal gain, or abusing public office. If someone tries to commit these crimes or works with others to commit them, they can still be held responsible.

The FMA can provide insurance or pay for legal costs for its members and employees in some situations. This is similar to the protection given to other government organisations.

There are some special rules about this protection when it comes to search and surveillance activities. These rules are explained in another law called the Search and Surveillance Act.

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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=DLM3231086.

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Part 2 Financial Markets Authority
Miscellaneous matters

22Protection from liability for FMA and members and employees

  1. The FMA is not liable for anything it may do or fail to do in the course of the performance or exercise or intended performance or exercise of its functions, powers, or duties, unless it is shown that it acted in bad faith or without reasonable care.

  2. No member or employee of the FMA, nor any delegate of the FMA, is liable for anything that person may do or say or fail to do or say in the course of the operations of the FMA, unless it is shown that the person acted in bad faith.

  3. Nothing in subsections (1) and (2) applies in respect of proceedings for—

  4. an offence against section 78, 78AA(1), 78A(1), 105, 105A, or 105B of the Crimes Act 1961; or
    1. the offence of conspiring to commit an offence against any of those sections of the Crimes Act 1961; or
      1. the offence of attempting to commit an offence against any of those sections of the Crimes Act 1961.

        1. Sections 122 to 126 of the Crown Entities Act 2004 apply as if the conduct for which a person may be indemnified or insured under those sections were conduct that is covered by the protection from liability in this section.

        2. This section contains an exception to section 121 of the Crown Entities Act 2004.

        3. This section is subject to sections 165 to 168 of the Search and Surveillance Act 2012 (which provide for immunities in relation to orders and warrants, and entry, search, and surveillance powers).

        Compare
        Notes
        • Section 22(3)(a): amended, on , by section 335 of the Intelligence and Security Act 2017 (2017 No 10).
        • Section 22(6): amended, on , by section 245(2) of the Search and Surveillance Act 2012 (2012 No 24).