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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Market manipulation

264: Criminal liability for false or misleading statement or information

You could also call this:

"Telling lies about money products is a crime and can lead to big fines or prison."

Illustration for Financial Markets Conduct Act 2013

If you make a false or misleading statement about a financial product, you can get in trouble with the law. You commit an offence if you know the statement is false or misleading in an important way. This is related to what is said in section 262. If you are found guilty of this offence, you can face serious penalties. As an individual, you could go to prison for up to 5 years, get a fine of up to $500,000, or both, but for other cases, the fine can be up to $2.5 million.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091372.

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Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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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."

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265: False or misleading appearance of trading, or

"Don't fake how well financial products are selling to trick people into buying or selling them."

Part 5Dealing in financial products on markets
Market manipulation

264Criminal liability for false or misleading statement or information

  1. A person who contravenes section 262 commits an offence if the person knows that the statement or information is false in a material aspect or is materially misleading.

  2. A person who commits an offence under subsection (1) is liable on conviction,—

  3. in the case of an individual, to imprisonment for a term not exceeding 5 years, a fine not exceeding $500,000, or both; and
    1. in any other case, to a fine not exceeding $2.5 million.

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