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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Market manipulation

262: False or misleading statement or information

You could also call this:

"Don't share false information about financial products that could trick people into buying or selling them."

Illustration for Financial Markets Conduct Act 2013

You must not say or share something that is false or misleading about financial products. This is because you know or should know that what you are saying is not true, and it could affect how people buy or sell these products. You could influence people to buy or sell financial products, change their price, or decide how to vote on something related to these products.

You should not do this if you know or should know that what you are saying is false or misleading. It is wrong to share false or misleading information that could make people buy or sell financial products, change their price, or decide how to vote. This rule is in place to protect people who are buying or selling financial products.

If you want to compare this rule to an older law, you can look at s 11 of a law from 1988. This older law also dealt with false or misleading information about financial products. You can find more information about this older law by following the link.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091370.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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261: Chinese wall defence, or

"Having rules to stop insiders influencing decisions is a defence against breaking financial market rules"

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263: Exception for takeovers, or

"Some takeover offers don't follow the usual rules because they are controlled by other laws."

Part 5Dealing in financial products on markets
Market manipulation

262False or misleading statement or information

  1. A person must not make a statement or disseminate information if—

  2. a material aspect of the statement or information is false or the statement or information is materially misleading; and
    1. the person knows or ought reasonably to know that a material aspect of the statement or information is false or that the statement or information is materially misleading; and
      1. the statement or information is likely to—
        1. induce a person to trade in quoted financial products; or
          1. have the effect of increasing, reducing, maintaining, or stabilising the price for trading in those financial products; or
            1. induce a person to exercise a voting right attached to a quoted financial product in a particular way, or to abstain from exercising such a right.

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