Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Insider trading - Insider conduct prohibited

241: Information insider must not trade

You could also call this:

"Insiders can't buy or sell company shares if they know secret information"

Illustration for Financial Markets Conduct Act 2013

If you are an information insider of a company that is listed on the stock market, you must not buy or sell the company's financial products that are quoted on the market. You also must not trade quoted derivatives if you are an information insider in relation to those derivatives. When the law talks about "trade", it means buying or selling something, but it does not include getting something through a gift or inheritance, as explained in subpart 3.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091310.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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240: Prohibition on insider conduct, or

"Don't use secret information to get an unfair advantage in the stock market"

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242: Information insider must not disclose inside information, or

"Keep secret information about companies that could affect trading"

Part 5Dealing in financial products on markets
Insider trading: Insider conduct prohibited

241Information insider must not trade

  1. An information insider of a listed issuer must not trade quoted financial products of the listed issuer.

  2. An information insider in relation to quoted derivatives must not trade the derivatives.

  3. In this subpart and subpart 3, trade—

  4. means acquire or dispose of; but
    1. does not include acquire, or dispose of, by inheritance or gift.

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