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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Insider trading - Defences

257: Absence of knowledge of trading

You could also call this:

"It's not an offence if you didn't know you were trading financial products and couldn't be expected to know."

Illustration for Financial Markets Conduct Act 2013

If you are taken to court for breaking a rule in section 241 of the Financial Markets Conduct Act 2013, you have a defence. You can say you did not know you were trading financial products. You must also show that you could not reasonably be expected to know you were trading them. This defence is for when you are accused of breaking the rules in section 241.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091351.

Topics:
Crime and justice > Criminal lawMoney and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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256: Exception for Reserve Bank, or

"The Reserve Bank doesn't have to follow some finance rules when it trades certain products."

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258: Inside information obtained by independent research and analysis, or

"Getting inside information by doing your own research is a valid defence."

Part 5Dealing in financial products on markets
Insider trading: Defences

257Absence of knowledge of trading

  1. In any proceeding against a person (A) for contravention of section 241, it is a defence if A did not know, and could not reasonably be expected to know, that A traded the financial products.

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