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Financial Markets Conduct Act 2013

Governance of financial products - Intervention in debt securities offered under regulated offer or registered schemes - Provisions assisting supervisor or FMA to intervene

198: Duty of auditor to report to supervisor or FMA

You could also call this:

"Auditors must report important information to supervisors or the Financial Markets Authority."

Illustration for Financial Markets Conduct Act 2013

If you are an auditor for a company that issues debt securities or runs a registered scheme, this law applies to you. You must send a copy of certain documents to the supervisor of the debt security or scheme, or to the Financial Markets Authority (FMA) if there is no supervisor. You need to do this as soon as possible after you give the documents to the company or its shareholders.

When you are doing your job as an auditor, you might find out something that is important for the supervisor to know. If this happens, you must write a report about it and send it to the company within 7 working days. You also need to send a copy of the report to the supervisor or the FMA.

The supervisor might ask you for information about the company or scheme from time to time. If they do, you must provide the information they ask for, as long as you know it and think it is relevant to the supervisor's job. If you tell the supervisor something in good faith, Section 214 protects you, which means you are safe from negative consequences for making the disclosure.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091216.

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Part 4Governance of financial products
Intervention in debt securities offered under regulated offer or registered schemes: Provisions assisting supervisor or FMA to intervene

198Duty of auditor to report to supervisor or FMA

  1. This section applies to the auditor of an issuer of a debt security or a registered scheme.

  2. If the auditor provides the issuer, any of the issuer's members or shareholders, or any of the holders of the debt security or managed investment product with any document required by an Act or a trust deed relating to the financial product or scheme, the auditor must, as soon as practicable, send a copy to the supervisor of the debt security or registered scheme or, if there is no supervisor, to the FMA.

  3. If, in the performance of the auditor's duties, the auditor becomes aware of a matter that, in the auditor's opinion, is relevant to the exercise or performance of the powers or duties of the supervisor of the debt security or registered scheme, the auditor must, within 7 working days of becoming aware of the matter, send—

  4. a written report on the matter to the issuer; and
    1. a copy of the report to the supervisor or, if there is no supervisor, to the FMA.

      1. The auditor must, from time to time, at the request of the supervisor, provide the supervisor with any information relating to the issuer or registered scheme—

      2. that the supervisor requests; and
        1. that is within the auditor's knowledge; and
          1. that is, in the auditor's opinion, relevant to the exercise or performance of the powers or duties of the supervisor.

            1. Section 214 (protected disclosure) applies to a disclosure in good faith under this section.

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