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Financial Markets Authority Act 2011

General information-gathering and enforcement powers - FMA may exercise person’s right of action

36: High Court may grant leave in certain circumstances

You could also call this:

“The court can let the FMA take over some legal cases if it's best for everyone”

The Financial Markets Authority (FMA) can ask the High Court for permission to start or take over certain legal proceedings. This can happen even if someone else (called “person A”) objects or has already started the proceedings.

The High Court will give permission if they think it’s good for the public for the FMA to be in charge of the case instead of person A. However, if person A is just one person (not a company or group), the FMA can’t ask for this permission.

When deciding whether to give permission, the High Court will think about:

  • Whether person A plans to start or continue the case properly
  • How it might affect other people involved
  • Any other important things

The FMA needs this permission from the High Court to either start a case if person A objects, or to take over a case that person A has already started.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3231718.

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Part 3 General information-gathering and enforcement powers
FMA may exercise person’s right of action

36High Court may grant leave in certain circumstances

  1. The FMA may, with the leave of the High Court,—

  2. commence proceedings under section 34(1)(a) if person A objects under section 35(1)(c)(ii); or
    1. take over proceedings under section 34(1)(b) if proceedings have been commenced by person A.

      1. The High Court must give leave if it is satisfied that it is in the public interest for—

      2. the FMA to exercise a power under section 34(1)(a) or (b) (as the case may be); and
        1. the FMA, rather than person A, to control the conduct of the proceedings.

          1. Despite subsections (1) and (2), if person A is an individual, this section does not apply (and, accordingly, the High Court may not give leave under this section).

          2. The High Court must, when considering whether to give leave, have regard to—

          3. whether person A intends to commence or diligently continue the proceedings (as the case may be); and
            1. the interests of the persons referred to in section 34(3); and
              1. any other matters it considers relevant.