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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Continuous disclosure

272: No contravention of continuous disclosure provisions by person who takes reasonable steps to ensure listed issuer complies

You could also call this:

"You won't get in trouble if you try your best to help a company follow the rules."

Illustration for Financial Markets Conduct Act 2013

If you are a person who helps a listed issuer follow the rules, you will not get in trouble if the issuer does not follow the continuous disclosure rules. This is because you took all the reasonable steps you could to make sure the issuer was following the rules. After taking these steps, you also believed that the issuer was following the rules, and you had good reasons to think this. You can find more information about similar rules in the Securities Amendment Act 1988.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091390.

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271: What are continuous disclosure provisions, or

"Companies must tell everyone about important events as they happen"

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273: Purposes of subpart, or

"This law helps keep markets fair by making sure people know who's in charge of big companies."

Part 5Dealing in financial products on markets
Continuous disclosure

272No contravention of continuous disclosure provisions by person who takes reasonable steps to ensure listed issuer complies

  1. A person (A) does not, in relation to the contravention by a listed issuer of a continuous disclosure obligation or a term or condition of a continuous disclosure exemption, contravene, or become involved in the contravention of, that obligation or term or condition if—

  2. A took all steps (if any) that were reasonable in the circumstances to ensure that the listed issuer complied with the obligation or term or condition; and
    1. after doing so, A believed on reasonable grounds that the listed issuer was complying with the obligation or term or condition.

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