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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Insider trading - When prohibition on insider conduct does not apply

249: Exceptions in case of knowledge of person's own intentions or activities

You could also call this:

"It's okay to trade or advise on financial products if you know your own plans or someone else's plans."

Illustration for Financial Markets Conduct Act 2013

You do not break the law if you trade financial products because you know what you plan to do with them. You can trade financial products if you have knowledge about your own plans or activities related to those products. This is stated in section 241(1) of the Financial Markets Conduct Act 2013.

If you advise someone about financial products, you do not break the law just because you know what they plan to do. You can advise someone to trade or hold financial products if you have knowledge about their plans or activities. This is stated in section 243(1) of the Financial Markets Conduct Act 2013.

You can find more information about this by looking at the related laws, such as the 1988 No 234 law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091332.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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248: Exceptions in respect of underwriting agreements, or

"When underwriting agreements are involved, there are exceptions to the rules about using inside information to gain an advantage."

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250: Exceptions in case of knowledge in relation to derivatives, or

"It's okay to trade derivatives if you know things about your own deals or business."

Part 5Dealing in financial products on markets
Insider trading: When prohibition on insider conduct does not apply

249Exceptions in case of knowledge of person's own intentions or activities

  1. A person (A) does not contravene section 241(1) merely because A trades the financial products with the knowledge that A proposes to enter into, or has previously entered into, 1 or more transactions or agreements in relation to the financial products or the listed issuer or the listed issuer's business activities.

  2. A person (B) does not contravene section 243(1) merely because B advises or encourages another person (A) to trade or hold financial products when B has knowledge, acquired in the course of acting as A's adviser, that A proposes to enter into, or has previously entered into, 1 or more transactions or agreements in relation to the financial products or the listed issuer or the listed issuer's business activities.

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