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Financial Markets Authority Act 2011

General information-gathering and enforcement powers - Other powers - Power to require warning to be disclosed

49: FMA may require its warning to be disclosed

You could also call this:

“FMA can make people share its money warnings”

The Financial Markets Authority (FMA) can make people share its warnings about financial matters. If the FMA gives a warning about someone involved in financial markets, they can tell that person or people connected to them to do certain things.

The FMA can ask them to show the warning on their websites, put it in their communications, or include it in important documents. They might need to add the warning to existing documents or give it out with new ones.

The FMA can decide how and where the warning should be shown. They can also tell the person to share the warning with others connected to them.

Before making someone share a warning, the FMA has to think about whether it helps people feel confident about financial markets. They also have to tell the person they might do this and give them a chance to respond.

The FMA can change or cancel their order about sharing the warning if they need to.

This rule applies to people who work in financial markets or deal with financial products. It also explains what some important terms mean, like ‘disclosure document’ and ‘offer document’.

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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=DLM3231734.

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Part 3 General information-gathering and enforcement powers
Other powers: Power to require warning to be disclosed

49FMA may require its warning to be disclosed

  1. If the FMA has issued a warning about any matter relating to a relevant person, the FMA may, by written notice served on the relevant person, order the relevant person, or all or any associated persons of the relevant person, or both to do 1 or more of the following:

  2. prominently disclose a copy of the warning on 1 or more Internet sites maintained by or on behalf of the relevant person or any of those associated persons:
    1. ensure that every restricted communication of the kind that is specified in the order and that is distributed by or on behalf of the relevant person or any of those associated persons contains a copy of the warning in a prominent position or is accompanied by a copy of the warning:
      1. ensure that any disclosure document or other offer document of the kind that is specified in the order contains, or is amended to contain, a copy of the warning in a prominent position or is accompanied by a copy of the warning:
        1. ensure that any document of the kind that is specified in the order and that is required by any provision of the financial markets legislation to be given by the relevant person, or any of those associated persons, to another person contains, or is amended to contain, a copy of the warning in a prominent position or is accompanied by a copy of the warning.

          1. The FMA may make an order under subsection (1) on the terms and conditions (if any) that it thinks fit.

          2. If an order under subsection (1) extends to associated persons of the relevant person, the order may require—

          3. all, or any specified class or classes, of the associated persons to comply with the order (including associated persons that may be incorporated or formed after the date of the order); and
            1. the relevant person to provide a copy of the order to all or any of those associated persons.

              1. For the purpose of subsection (3), the order is not required to refer to the associated persons by name.

              2. The FMA may exercise a power under subsection (1) only if—

              3. the FMA has had regard to whether exercising the power contributes to its function of promoting the confident and informed participation of businesses, investors, and consumers in the financial markets; and
                1. the FMA gives the relevant person at least 3 working days' written notice of the following matters before the FMA exercises the power:
                  1. that the FMA may make an order under subsection (1); and
                    1. the reasons why it is considering exercising that power; and
                    2. the FMA gives the relevant person or the relevant person's representative an opportunity to make written submissions and to be heard on the matter within that notice period.

                      1. The FMA may—

                      2. vary an order made under subsection (1) in the same way as it may make the order:
                        1. revoke an order made under subsection (1) if it is satisfied that it should not continue in force.

                          1. In this section and section 51,—

                          2. relevant person means—
                            1. a person who is or has been a financial markets participant; or
                              1. a person who is or has engaged in conduct that involves dealings in financial products:
                              2. disclosure document—
                                1. has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013; and
                                  1. includes a register entry (within the meaning of that Act):
                                  2. offer document means a document that contains or refers to an offer to acquire or dispose of financial products:
                                    1. offer, restricted communication, associated person, and distributed have the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013.

                                      Notes
                                      • Section 49(1)(b): replaced, on , by section 70(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                      • Section 49(1)(c): amended, on , by section 70(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                      • Section 49(7)(a)(ii): amended, on , by section 70(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                      • Section 49(7)(b): replaced, on , by section 70(4) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                      • Section 49(7)(c): amended, on , by section 70(5) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                      • Section 49(7)(d): replaced, on , by section 70(6) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).