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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

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a supervisor of a debt security or registered scheme, you have to report to the FMA if you think the issuer has broken or might break an important rule. You must tell the FMA as soon as you can. You also have to tell the FMA what you plan to do about the problem and when you will do it. If you make a report honestly, you are protected under section 214. You are protected if you report a problem in good faith, which means you honestly think there is a problem.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091222.

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

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

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204: Duty of supervisor to report serious financial problems to FMA, or

"Supervisors must tell the FMA about serious money problems with the companies they oversee."

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

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

  1. If a supervisor of a debt security or registered scheme has reasonable grounds to believe that the issuer has contravened, may have contravened, or is likely to contravene an issuer obligation in a material respect, the supervisor must, as soon as practicable,—

  2. report the contravention or possible contravention to the FMA; and
    1. advise the FMA of the steps (if any) that the supervisor intends to take in respect of the contravention or possible contravention and the date by which the steps are to be taken.

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

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