If you are trading financial products on behalf of someone else, you might not break the law. This is if you are acting for another person and you trade the products because they told you to. You must not have told them any inside information before trading.

You also must not have suggested they tell you to trade the products. If you follow these rules, section 241 does not apply to you. You are just doing what the other person asked you to do.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091340.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

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."

252: Exceptions from section 241 for takeovers, or

"Some takeovers don't have to follow the usual rules"

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

251Exception for agent executing trading instruction only

Section 241 does not apply in the case of a person (A) if,—
in trading the financial products, A was acting on behalf of another person (B); and
A traded the financial products on B's specific instruction; and
before trading, A did not disclose inside information to B; and
A did not advise or encourage B to instruct A to trade.

Compare

1988 No 234 s 9D