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Financial Markets Conduct Act 2013

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

242: Information insider must not disclose inside information

You could also call this:

"Keep secret information about companies that could affect trading"

Illustration for Financial Markets Conduct Act 2013

If you have inside information about a company, you must not tell someone else if you think they will use it to trade financial products. You also must not tell someone else if you think they will advise another person to trade or hold those products. This rule applies to people who have inside information about a company that is listed on the stock market. It also applies to people who have inside information about derivatives that are quoted on the market. You can find more information about this rule by looking at the Financial Markets Conduct Act 2013 and similar laws, such as s 8D of 1988 No 234.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091312.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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241: Information insider must not trade, or

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

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243: Information insider must not advise or encourage trading, or

"Insiders can't tell others to buy or sell company shares or products"

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

242Information insider must not disclose inside information

  1. An information insider (A) of a listed issuer must not directly or indirectly disclose inside information to another person (B) if A knows or ought reasonably to know or believes that B will, or is likely to,—

  2. trade quoted financial products of the listed issuer; or
    1. advise or encourage another person (C) to trade or hold those products.

      1. An information insider (A) in relation to quoted derivatives must not directly or indirectly disclose inside information to another person (B) if A knows or ought reasonably to know or believes that B will, or is likely to,—

      2. trade the derivatives; or
        1. advise or encourage another person (C) to trade or hold those derivatives.

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