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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Purposes, overview, and interpretation - Relevant interests

237: Extension of basic rule to interests held by other persons under control or acting jointly

You could also call this:

"When others control financial products for you or do what you say, it's like you own them."

Illustration for Financial Markets Conduct Act 2013

You have a relevant interest in a financial product if someone else has it and they do what you tell them to do. This can be because they are used to following your instructions or they have to do what you say. You also have a relevant interest if you can control how someone else votes with their financial products, or if you can decide whether they buy or sell their financial products. If you and the other person are related companies, or if you have an agreement to work together, you also have a relevant interest, as explained in section 235.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091302.

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236: Extension of basic rule to powers or controls exercisable through trust, agreement, etc, or

"Having control through a trust or agreement is still having control"

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238: Situations not giving rise to relevant interests, or

"When you don't have a say in a financial product, even if you're involved with it for work."

Part 5Dealing in financial products on markets
Purposes, overview, and interpretation: Relevant interests

237Extension of basic rule to interests held by other persons under control or acting jointly

  1. A person (A) has a relevant interest in a financial product that another person (B) has if—

  2. B or B's directors are accustomed or under an obligation (whether legally enforceable or not) to act in accordance with A's directions, instructions, or wishes in relation to a power or control referred to in section 235; or
    1. A has the power to exercise, or control the exercise of, the right to vote attached to 20% or more of the voting products of B; or
      1. A has the power to acquire or dispose of, or to control the acquisition or disposal of, 20% or more of the voting products of B; or
        1. A and B are related bodies corporate; or
          1. A and B have an agreement to act in concert in relation to a power or control referred to in section 235.

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