If you are taken to court for breaking a rule about trading financial products, you have a defence. You can say you did not break the rule if you traded the products or offered to trade them in a way that is normally accepted and for a good reason. This defence can be used if you are accused of breaking section 265.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091383.
267: Persons treated as contravening false or misleading appearance of trading prohibition, or
"Breaking rules by making fake trades to trick people"
269: Criminal liability for false or misleading appearance of trading, or
"Breaking rules that make trading look fake can lead to big trouble and fines."
In any proceeding against a person (A) for contravention of section 265, it is a defence if the trading in the financial products occurred, or the offer to trade was made, in conformity with accepted market practices and for a proper purpose.
