Plain language law

New Zealand law explained for everyone

Financial Markets Authority Act 2011

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

38: Powers of High Court for proceedings exercising person’s right of action

You could also call this:

“Court helps FMA in legal cases about money matters”

The High Court has special powers when the Financial Markets Authority (FMA) is involved in legal proceedings. You should know that the court can make any order it thinks is right for these cases. For example, the court can let the FMA control how the case is run. It can also give instructions on how to handle the case.

The court can tell person A (someone involved in the case) or their directors to give information or help with the case. If the defendant (the person being sued) has to pay money, the court can say that this money should first go to cover the FMA’s costs for starting or taking over the case.

Sometimes, the court can decide that the money the defendant has to pay should go to other people instead of person A. The FMA can also ask the court for temporary help, even if they haven’t done all the normal steps yet. The court can give this temporary help with certain conditions, like telling the FMA to give notice or ask for permission later.

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 It might be out of date or be missing some parts.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=DLM3231721.

Topics:
Crime and justice > Courts and legal help Money and consumer rights > Banking and loans Money and consumer rights > Consumer protection Government and voting > Government departments Business > Industry rules Business > Fair trading
Previous

37: Procedural requirements for leave to exercise person’s right of action, or

"Steps the FMA must follow to take action for someone else"

Next

39: Representative actions, or

"FMA can act for a group of people with similar concerns in court"

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

38Powers of High Court for proceedings exercising person’s right of action

  1. The High Court may, on the application of the FMA, make any order it thinks fit in relation to proceedings commenced or taken over, or to be commenced or taken over, under this subpart, including (without limitation) an order—

  2. authorising the FMA to control the conduct of the proceedings:
    1. giving directions for the conduct of the proceedings:
      1. requiring person A or the directors of person A to provide information or assistance in relation to the proceedings:
        1. directing that any amount ordered to be paid by a defendant in the proceedings must be applied first to pay, in whole or in part, the FMA's actual costs in commencing or taking over the proceedings under this subpart and in conducting those proceedings:
          1. subject to paragraph (d), directing that any amount ordered to be paid by a defendant in the proceedings must be paid, in whole or part, to any persons referred to in section 34(3)(b) or (c) instead of to person A.

            1. If the FMA proposes to exercise a power under this subpart, the High Court may grant interim relief on the application of the FMA, whether or not the FMA has given the required notice, obtained leave, or satisfied any other requirements for its exercise of a power under this subpart.

            2. The High Court may grant that interim relief on the conditions it thinks fit, including (without limitation) conditions as to the giving of notice or making of an application for leave.