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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Disclosure of interests of substantial product holders in listed issuers - Substantial holding disclosure obligations

274: Meaning of substantial product holder, substantial holding, and percentage

You could also call this:

"What it means to own a big part of a company"

Illustration for Financial Markets Conduct Act 2013

You are a substantial product holder in a company if you have a substantial holding in that company. A substantial holding means you have a relevant interest in 5% or more of a type of voting product in the company. This is for the purposes of the Financial Markets Conduct Act 2013.

You have a separate substantial holding for each type of voting product where you have a substantial holding. The percentage of products you have is calculated in a specific way for the Financial Markets Conduct Act 2013. You can find more information about similar rules in the Securities Act 1988.

When calculating the percentage of products you have, it is done according to a specific formula. This formula is used to work out the percentage for the purposes of the Act. It helps determine if you have a substantial holding in a company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091394.

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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."

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275: Person may be treated as holding financial products where person has relevant interest in certain derivatives, or

"If you have a special interest in a bet on a market product, you might be treated as owning that product."

Part 5Dealing in financial products on markets
Disclosure of interests of substantial product holders in listed issuers: Substantial holding disclosure obligations

274Meaning of substantial product holder, substantial holding, and percentage

  1. A person is a substantial product holder in a listed issuer for the purposes of this Act if that person has a substantial holding in that listed issuer.

  2. A person has a substantial holding in a listed issuer for the purposes of this Act if the person has a relevant interest in quoted voting products that comprise 5% or more of a class of quoted voting products of the listed issuer.

  3. A person has a separate substantial holding for the purposes of this Act for each class in respect of which the person has a substantial holding under subsection (2).

  4. The percentage of financial products that a person has in a class, for the purposes of this subpart, is calculated as follows:

    Where:

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