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Financial Markets Authority Act 2011

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

51: Offence of failing to comply with order

You could also call this:

“Breaking the law by not following FMA orders”

If you are told to do something by the Financial Markets Authority in an order under section 49, you must do it. If you don’t, you are breaking the law. This applies to you if you are a ‘relevant person’ or if you are connected to a relevant person and you knew about the order.

If you don’t follow the order and you don’t have a good reason, you can be fined. The fine can be up to $300,000. This is a lot of money, so it’s important to take these orders seriously.

Remember, it’s not just the main person who can get in trouble. If you are connected to them and you know about the order, you also have to follow it. If you don’t, you can be fined too.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3565221.

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50: FMA must give notice of orders, or

"The FMA must tell people when they make, change, or cancel rules"

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52: Power to authorise person to obtain information or documents, or

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

51Offence of failing to comply with order

  1. Every relevant person to whom an order under section 49 applies commits an offence if the relevant person refuses or fails, without reasonable excuse, to comply with the order.

  2. If an order under section 49 applies to an associated person of a relevant person, the associated person commits an offence if the associated person—

  3. knew, or ought reasonably to have known, that the order applied to the associated person; and
    1. refuses or fails, without reasonable excuse, to comply with the order.

      1. Every person who commits an offence against subsection (1) or (2) is liable on conviction to a fine not exceeding $300,000.

      Notes
      • Section 51(3): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).