Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Need for financial product market licence

309: What is a financial product market

You could also call this:

"A financial product market is a place where people buy and sell financial products with each other."

Illustration for Financial Markets Conduct Act 2013

When you think about a financial product market, it is a place where people can buy or sell financial products. This can happen when someone makes an offer to buy or sell a financial product and someone else accepts that offer. It can also happen when someone invites others to buy or sell financial products, and this might lead to people making or accepting offers to buy or sell.

You might wonder what kinds of things are not considered a financial product market. If someone is just buying or selling financial products for themselves or for one other person, that is not a financial product market. It is also not a financial product market if a company is just matching people who want to buy its financial products with people who want to sell those same products. Some services are already covered by special licences, and those are not financial product markets either. There might be other things that are not considered financial product markets, and these would be decided by regulations.

If the Financial Markets Authority decides that something is not exempt, then it is not exempt, even if it seems like it should be, as stated in the section 562(1)(i).

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091456.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

308: Principles guiding exercise of powers under this subpart, or

"Rules to help leaders make good decisions about financial markets"

Next

310: Need for financial product market licence, or

"You need a licence to run a financial market in New Zealand"

Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Need for financial product market licence

309What is a financial product market

  1. For the purposes of this Act, a financial product market is a facility by means of which—

  2. offers to acquire or dispose of financial products are made or accepted; or
    1. offers or invitations are made to acquire or dispose of financial products that are intended to result or may reasonably be expected to result, directly or indirectly, in—
      1. the making of offers to acquire or dispose of financial products; or
        1. the acceptance of offers of that kind.

        2. However, subsection (1) does not apply to the extent that the facility constitutes—

        3. a person making or accepting offers or invitations to acquire or dispose of financial products on the person's own behalf or on behalf of 1 party to the transaction only (for example, a continuous issuer of financial products):
          1. an issuer or a related body corporate of an issuer matching persons who wish to acquire financial products of that issuer with persons who wish to dispose of financial products of that issuer (whether at a specified price or otherwise):
            1. a service that is covered by a market services licence:
              1. any other conduct of a kind prescribed by the regulations.

                1. Subsection (2)(a) does not apply if the conduct of a person is declared by the FMA, by notice under section 562(1)(i), to be conduct that is not exempt under that paragraph.