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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

206: FMA's directions to supervisor (or issuer)

You could also call this:

"The Financial Markets Authority gives orders to supervisors or companies to follow certain rules."

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority can give a supervisor or an issuer a notice with directions. You need to know that this notice must say what steps the supervisor or issuer must take, and when they must take them. The notice can be about what the issuer, a registered scheme, or financial products must do.

If you get a notice with directions, you must follow them, as the law says you have to comply with the direction, and you can see subpart 3 of Part 8 for more information about what happens if you do not.

If you do not follow the directions without a good reason, you can commit an offence and have to pay a fine of up to $300,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091225.

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205: FMA's powers of direction, or

"The FMA can give orders to protect investors if their money is at risk."

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207: Power of supervisor or FMA to apply for order to remedy problems, or

"Someone can ask the court for help if a financial product or scheme has problems that might harm you."

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

206FMA's directions to supervisor (or issuer)

  1. If the notice under section 205 gives a direction to the supervisor (or, if there is no supervisor, the issuer), the notice must specify—

  2. the step or steps that the supervisor (or issuer) must take in relation to the issuer, the registered scheme (if any), or the financial products; and
    1. the date by which each step will be taken.

      1. The supervisor or the issuer (as the case may be) must comply with the direction (see subpart 3 of Part 8, which provides for civil remedies for a contravention of this provision).

      2. A supervisor or issuer (as the case may be) that refuses or fails, without reasonable excuse, to comply with the direction commits an offence and is liable on conviction to a fine not exceeding $300,000.

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