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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

200: What person must do if duty to report serious problem applies

You could also call this:

"Tell someone in charge if you find a serious problem at work"

Illustration for Financial Markets Conduct Act 2013

If a serious problem happens, you must tell the supervisor or the Financial Markets Authority (FMA) as soon as possible. You must report the problem to the FMA if there is no supervisor, or if the problem is about the supervisor doing something wrong. You have to give the supervisor or FMA all the information you have about the problem that you got while doing your job. You do not have to do any extra work to find out about the problem, just report what you already know. If you tell the supervisor or FMA about the problem honestly, you are protected under section 214.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091219.

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199: Duty of auditor, investment manager, administration manager, custodian, or actuary to report serious problems, or

"People in charge of company money must report big problems or rule breaking"

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201: Protections extend to volunteers of supporting information for other protected disclosures, or

"Helping someone who made a complaint is protected by law if you do it to genuinely help."

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

200What person must do if duty to report serious problem applies

  1. If section 199 applies, the person to whom that section applies must, as soon as practicable,—

  2. report the serious problem to the supervisor or, if subsection (2) applies, to the FMA; and
    1. disclose to the supervisor or the FMA (as applicable under paragraph (a)) all information relevant to the serious problem that is in the possession or control of the relevant person and was obtained in the course of, or in connection with, the performance of functions of that relevant person.

      1. A serious problem must be reported to the FMA instead of the supervisor if—

      2. there is no supervisor; or
        1. the serious problem concerns a contravention or likely contravention of an obligation by the supervisor; or
          1. the contravention relates to the custodian and the custodian is a related body corporate of the supervisor.

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

            2. To avoid doubt, section 199 and this section do not require a relevant person to carry out functions additional to those functions that the person would ordinarily carry out in the course of holding the person's office (other than as expressly required by subsection (1)).

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