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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Purposes, overview, and interpretation - Insider conduct

234: Meaning of information insider, inside information, and adviser

You could also call this:

"What it means to have secret company information or be an adviser"

Illustration for Financial Markets Conduct Act 2013

You are considered an information insider of a company if you have important information about the company that is not available to the public, and you know or should know that this information is important and not publicly available. You can be an information insider of a company even if you are the company itself. If you have important information about certain financial products, like derivatives, that is not available to the public, and you know or should know that this information is important and not publicly available, then you are also an information insider.

Inside information refers to the important details that make you an information insider of a company or certain financial products. An adviser is someone who gives professional advice, like a lawyer, accountant, or financial adviser. You can find more information about this by looking at the Financial Markets Conduct Act 2013 and other related laws, such as the Securities Act 1986, ss 8A, 8B, and 11E.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091293.

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233: Certain derivatives treated as being quoted financial products of listed issuer, or

"Derivatives based on listed company products are treated like the company's products"

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235: Relevant interests in financial products (basic rule), or

"What it means to have a say or control in a financial product"

Part 5Dealing in financial products on markets
Purposes, overview, and interpretation: Insider conduct

234Meaning of information insider, inside information, and adviser

  1. In this Part, a person is an information insider of a listed issuer if that person—

  2. has material information relating to the listed issuer that is not generally available to the market; and
    1. knows or ought reasonably to know that the information is material information; and
      1. knows or ought reasonably to know that the information is not generally available to the market.

        1. A listed issuer may be an information insider of itself.

        2. In this Part, a person is an information insider in relation to quoted derivatives if that person—

        3. has material information relating to any of the following that is not generally available to the market:
          1. the derivatives:
            1. the underlying:
              1. the issuer of a financial product underlying the derivatives; and
              2. knows or ought reasonably to know that the information is material information; and
                1. knows or ought reasonably to know that the information is not generally available to the market.

                  1. In this Part, inside information means—

                  2. the information in respect of which a person is an information insider of the listed issuer in question; or
                    1. in the case of quoted derivatives, the information in respect of which a person is an information insider in relation to the derivatives in question.

                      1. In this Part, adviser means an adviser acting in a professional capacity (for example, a lawyer, an accountant, or a financial adviser).

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