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Financial Markets Authority Act 2011

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

42: Special limitation provision

You could also call this:

“Legal time limits for FMA start when they ask permission to sue”

If the Financial Markets Authority (FMA) wants to start legal proceedings, they need to ask the High Court for permission first. When the FMA asks for this permission, the date they ask is important for time limits.

For the Limitation Act 2010, the date the FMA asks for permission is treated as the date they filed their claim. This means the clock starts ticking for any time limits from that day.

For the older Limitation Act 1950, which sometimes still applies, the date the FMA asks for permission is treated as the date they started the legal proceedings. This also affects how time limits are counted.

These rules help make sure the FMA doesn’t run out of time to take legal action just because they had to ask for permission first.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3565213.

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41: Proceedings must not be settled, compromised, or discontinued without approval, or

"You need permission to end or change a legal case"

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43: Transitional provisions, or

"Rules for handling old and new financial market issues"

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

42Special limitation provision

  1. If the FMA applies for the leave of the High Court to commence proceedings under section 34(1)(a), the date on which that application for leave is filed must, for the purposes of—

  2. the Limitation Act 2010, be treated as being the date on which the claim is filed in relation to those proceedings:
    1. the Limitation Act 1950 (as applied under section 59 of the Limitation Act 2010), be treated as being the date on which the proceedings are brought.