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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Market manipulation

265: False or misleading appearance of trading

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

You cannot do something, or not do something, if it will create a false idea about trading in financial products. This false idea can be about how many people are actively trading, or about the supply, demand, price, or value of those products. You must not do this if you know, or should know, that your action will create this false idea.

You should check the link to section 11B of the 1988 No 234 act for more information. This law applies to people who trade in financial products on markets. It helps keep trading fair and honest.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091373.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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264: Criminal liability for false or misleading statement or information, or

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

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266: Exception for short selling and crossings, or

"Selling financial products you don't own, or buying and selling at the same time, is allowed in some cases"

Part 5Dealing in financial products on markets
Market manipulation

265False or misleading appearance of trading

  1. A person must not do, or omit to do, anything if—

  2. the act or omission will have, or is likely to have, the effect of creating, or causing the creation of, a false or misleading appearance—
    1. with respect to the extent of active trading in quoted financial products; or
      1. with respect to the supply of, demand for, price for trading in, or value of those financial products; and
      2. the person knows or ought reasonably to know that the person's act or omission will, or is likely to have, that effect.

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