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Financial Markets Authority Act 2011

General information-gathering and enforcement powers - Other powers - Power to accept undertakings

46A: Undertaking may include requirements as to compensation or penalties

You could also call this:

“Promises to fix mistakes in finance can include paying people back or paying fines”

When you break a rule in the financial markets, the Financial Markets Authority (FMA) can accept a promise from you to make things right. This promise is called an undertaking. The undertaking can include different things:

You might need to pay money to people who were affected by your actions or do something else to fix the problem you caused.

You might have to pay money to the FMA instead of getting a fine.

If you agree to pay money to the FMA, they will put it in a special bank account for the government. They will take out the money they spent on dealing with your case first.

The FMA will tell everyone about your promise to pay money by putting it on their website. They will say how much you promised to pay and briefly explain what rule you broke.

This is just one way the FMA can handle things when someone breaks the rules. They have other options 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=DLM6037724.

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Part 3 General information-gathering and enforcement powers
Other powers: Power to accept undertakings

46AUndertaking may include requirements as to compensation or penalties

  1. An undertaking under section 46 may include—

  2. an undertaking to pay compensation to any person or otherwise take action to avoid, remedy, or mitigate any actual or likely adverse effects arising from a contravention, involvement in a contravention, or possible contravention, or involvement in a contravention of any provision of the financial markets legislation:
    1. an undertaking to pay to the FMA an amount in lieu of a pecuniary penalty.

      1. The FMA must ensure that each amount paid under subsection (1)(b) is paid into a Crown Bank Account (after deducting the FMA's actual costs incurred in connection with the matter).

      2. If an undertaking referred to in subsection (1)(b) is given, the FMA must give notice of that undertaking on its Internet site (whether or not it gives notification of other undertakings given in relation to the same matter).

      3. The notice under subsection (3) must include—

      4. a statement of the amount that has been undertaken to be paid; and
        1. a brief description of the circumstances and nature of the alleged contravention to which the undertaking relates.

          1. This section does not limit section 46.

          Notes
          • Section 46A: inserted, on , by section 68 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).