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Financial Markets Conduct Act 2013

Governance of financial products - Governance of debt securities - Role of supervisor

118: Duty of issuer to report serious financial problems

You could also call this:

"Tell the supervisor if you might not be able to pay your debts"

Illustration for Financial Markets Conduct Act 2013

If you issue debt securities and you find out something that makes you think you might not be able to pay your debts, you have to tell the supervisor. You must tell the supervisor as soon as you can, and you have to share all the information you have about the problem. You also have to tell the supervisor what you plan to do to fix the problem and when you plan to do it, you can find more information about this by looking at the relevant law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091097.

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Part 4Governance of financial products
Governance of debt securities: Role of supervisor

118Duty of issuer to report serious financial problems

  1. This section applies if an issuer of a debt security becomes aware of information on the basis of which it could reasonably form the opinion that the issuer is, or is likely to become, insolvent.

  2. The issuer must, as soon as practicable,—

  3. disclose to the supervisor all information relevant to that matter that is in the possession or under the control of the issuer and that was obtained in the course of, or in connection with, the performance of its functions as issuer; and
    1. advise the supervisor of the steps (if any) that the issuer intends to take in respect of that matter and the date by which the steps are to be taken.

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