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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Market manipulation

269: Criminal liability for false or misleading appearance of trading

You could also call this:

"Breaking rules that make trading look fake can lead to big trouble and fines."

Illustration for Financial Markets Conduct Act 2013

If you break the rules in section 265, you can commit an offence. This happens if you know your actions will create a false or misleading appearance about financial products. You might make it seem like there is more trading happening than there really is, or you might affect the price or value of those products. You can find the rules you need to follow in section 265. If you commit this offence, you can get in trouble. As an individual, you could go to prison for up to 5 years, get a fine of up to $500,000, or both. If you are not an individual, you could get a fine of 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=DLM4091385.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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268: Defence, or

"Saying you didn't break the trading rules because you had a good reason"

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270: Listed issuers must disclose in accordance with listing rules if continuous disclosure listing rules apply, or

"Companies listed on the market must share important information with the public according to the rules."

Part 5Dealing in financial products on markets
Market manipulation

269Criminal liability for false or misleading appearance of trading

  1. A person who contravenes section 265 commits an offence if the person knows that 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—

  2. 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 products.

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

      2. 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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