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

39: Representative actions

You could also call this:

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

The law says that if the Financial Markets Authority (FMA) starts or takes over a legal case about someone, and other people have very similar concerns in that case, the High Court can let the FMA act for all or some of those people.

If the High Court does this, it can make any orders it thinks are needed. For example, it can decide who controls the case, how it’s run, who pays for it, and how to share any money that the defendant might have to pay among the people the FMA is representing.

This helps when lots of people have been affected in a similar way, so they don’t all have to go to court separately. The FMA can look after their interests together.

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 It might be out of date or be missing some parts.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=DLM3231722.

Topics:
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

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

"Court helps FMA in legal cases about money matters"

Next

40: FMA must consult person A, or

"The FMA must talk to you about legal actions they take about you, unless it makes things too difficult for them"

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

39Representative actions

  1. If the FMA commences or takes over proceedings under this subpart in respect of person A, and other persons have the same or substantially the same interest in relation to the subject-matter of the proceedings as person A, the High Court may appoint the FMA to represent all or some of the persons having the same or substantially the same interest.

  2. The High Court may, for the purpose referred to in subsection (1), make any order that it thinks fit, including (without limitation) an order—

  3. as to the control and conduct of the proceedings:
    1. as to the costs of the proceedings:
      1. directing the distribution of any amount ordered to be paid by a defendant in the proceedings among the persons represented.