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Financial Markets Conduct Act 2013

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

243: Information insider must not advise or encourage trading

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are an information insider for a company that is listed on the stock market, you must not advise or encourage another person to buy or sell the company's financial products. You also must not advise or encourage that person to tell someone else to buy or sell those products. This rule also applies if you are an information insider for a company that has derivatives listed on the market. In that case, you must not advise or encourage another person to buy or sell those derivatives, and you must not advise or encourage them to tell someone else to do so either. You can find more information about this rule by comparing it to the Securities Act 1988.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091319.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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242: Information insider must not disclose inside information, or

"Keep secret information about companies that could affect trading"

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244: Criminal liability for insider conduct, or

"Breaking insider trading rules can lead to prison or big fines if you use secret information unfairly."

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

243Information insider must not advise or encourage trading

  1. An information insider (A) of a listed issuer must not—

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

      1. An information insider (A) in relation to quoted derivatives must not—

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

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