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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

202: FMA may require supervisor to attest as to issuer's compliance with issuer obligations

You could also call this:

"The FMA can ask a supervisor to check if a company is following the rules and report back."

Illustration for Financial Markets Conduct Act 2013

The FMA can ask a supervisor to confirm if a company is following the rules. You need to know the FMA is like a referee for companies that issue debt securities or run registered schemes. The supervisor must tell the FMA if the company is breaking the rules in a big way.

If the FMA asks, the supervisor must either confirm the company is following the rules or explain why they cannot confirm this. The supervisor might say the company is breaking the rules, or might not be sure, and they must give details about what is happening, and also mention any report they made under section 203.

If a supervisor makes a report honestly under this rule, they are protected by section 214, which is about protected 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=DLM4091221.

Topics:
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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."

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203: Duty of supervisor to report contravention or possible contravention of issuer obligations to FMA, or

"Supervisors must report to the FMA if they think an issuer has broken or might break a rule."

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

202FMA may require supervisor to attest as to issuer's compliance with issuer obligations

  1. The FMA may require a supervisor of a debt security or registered scheme to attest to the FMA, at a time and in a manner specified by the FMA, as to whether the supervisor is satisfied that the issuer has not contravened an issuer obligation in a material respect.

  2. If the FMA requires a supervisor to attest to the FMA under this section, the supervisor must—

  3. provide that attestation; or
    1. if unable to attest to the FMA as required, report the reason, including the details of any contravention or possible contravention and, if applicable, the report under section 203.

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

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