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Financial Markets Conduct Act 2013

Governance of financial products - Registers and keeping copies of documents - Registers

219: Auditor must advise if auditor considers that subpart is not being complied with

You could also call this:

"Auditors must report if they think the rules are being broken"

Illustration for Financial Markets Conduct Act 2013

If you are an auditor, you must tell people if you think the rules in this part of the law are not being followed. You have to tell the issuer and the FMA as soon as you can. You also have to tell others, depending on what type of security is involved. If it is equity securities and the problem is serious, you tell the security holders at their next meeting. If it is debt securities or managed investment products, you tell the supervisor. If you tell someone about a problem in good faith, you are protected under section 214.

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"Checking company records to make sure they are correct"

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Part 4Governance of financial products
Registers and keeping copies of documents: Registers

219Auditor must advise if auditor considers that subpart is not being complied with

  1. If the auditor referred to in section 218 considers at any time that this subpart is not being complied with, the auditor must, as soon as practicable,—

  2. advise the issuer and the FMA; and
    1. advise,—
      1. in the case of equity securities, the security holders at their next meeting if the non-compliance is material:
        1. in the case of debt securities or managed investment products, the supervisor.

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

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