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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Disclosure of relevant interests in quoted financial products by directors and senior managers of listed issuers

297: Directors and senior managers of listed issuers must disclose relevant interests and dealings in relevant interests

You could also call this:

"Company bosses must tell people about their investments in the company"

Illustration for Financial Markets Conduct Act 2013

If you are a director or senior manager of a company listed on the stock market, you must tell people about your interests in the company's financial products. You have to do this within 5 trading days of becoming a director or senior manager, or when the company gets listed on the stock market. You must follow the rules set out in sections 299 and 300 to disclose your interests.

When you buy or sell financial products related to your company, you must also disclose this information. You have 20 working days to do this if you buy or sell products through certain plans, such as an employee share purchase scheme, or if the buy or sell happens because of a company amalgamation under Part 13 of the Companies Act 1993, or an arrangement approved under Part 15 of the Companies Act 1993. For other cases, you have 5 trading days to disclose the information.

This rule does not apply to certain derivatives. You must also follow the rules set out in sections 299 to 303A. A dividend reinvestment plan is a plan where your dividends are used to buy more shares, and a share top-up plan is a plan where you can buy more shares using your dividends.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091436.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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296: Purposes of subpart, or

"This part of the law helps companies be fair and stops unfair trading in financial markets."

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298: Disclosure of relevant interests and dealings in relevant interests in relation to specified derivatives, or

"Tell people about your interests in certain company financial products if you're a company director or senior manager."

Part 5Dealing in financial products on markets
Disclosure of relevant interests in quoted financial products by directors and senior managers of listed issuers

297Directors and senior managers of listed issuers must disclose relevant interests and dealings in relevant interests

  1. A director or senior manager of a listed issuer who has a relevant interest in a quoted financial product of the listed issuer or a related body corporate must disclose that fact, in accordance with sections 299 and 300, within 5 trading days of this section becoming applicable as a result of—

  2. the listing of the listed issuer; or
    1. the person's appointment as a director or senior manager.

      1. A director or senior manager of a listed issuer who acquires or disposes of a relevant interest in a quoted financial product of the listed issuer or a related body corporate must disclose that fact, in accordance with sections 299 and 300, within,—

      2. in the case of any of the following acquisitions or disposals, 20 working days after the acquisition or disposal:
        1. an acquisition under an employee share purchase scheme:
          1. an acquisition under a dividend reinvestment plan:
            1. an acquisition under a share top-up plan:
              1. an acquisition or a disposal that results from an amalgamation under Part 13 of the Companies Act 1993:
                1. an acquisition or a disposal that results from an arrangement approved under Part 15 of the Companies Act 1993:
                  1. a prescribed acquisition or disposal; or
                  2. in any other case, 5 trading days after the acquisition or disposal.

                    1. This section does not apply to specified derivatives.

                    2. This section is subject to sections 299 to 303A.

                    3. In this section,—

                      dividend reinvestment plan means a plan of the kind referred to in clause 10 of Schedule 1

                        share top-up plan means a plan established by an issuer under which previously issued shares of the issuer are offered, whether by the issuer or another person, only to some or all existing holders of the same class of shares, and those shares are sold in consideration for a direction made to the issuer to apply amounts that are payable to each existing holder from dividends declared by the issuer to the purchase of the shares.

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                        Notes
                        • Section 297(4): amended, on , by section 67 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).