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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

313: When financial product market taken to be operated in New Zealand

You could also call this:

"When is a financial market considered to be run in New Zealand?"

Illustration for Financial Markets Conduct Act 2013

A financial product market is considered to be operated in New Zealand if you operate it and you are a company based in New Zealand or a person who lives in New Zealand. It is also considered to be operated in New Zealand if the market's facilities are mostly in New Zealand. You are also operating a financial product market in New Zealand if you promote it to New Zealand investors.

If a financial product market can be accessed by New Zealand investors, it does not mean it is being promoted to them. The rules about what makes a financial product market operated in New Zealand are not the only circumstances that apply. You can still be operating a financial product market in New Zealand even if none of these specific situations apply to you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091461.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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312: Exemptions, or

"When you don't need a licence to run a financial market"

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314: General obligations in respect of licensed markets, or

"Rules for running a fair and honest market in New Zealand"

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

313When financial product market taken to be operated in New Zealand

  1. For the purposes of this subpart, a financial product market is taken to be operated in New Zealand if—

  2. it is operated by an entity that is incorporated or registered in New Zealand or by an individual who is ordinarily resident in New Zealand; or
    1. all, or a significant part of, the facility for the financial product market is located in New Zealand; or
      1. the financial product market is promoted to investors in New Zealand by or on behalf of the operator of that market or by or on behalf of an associated person of that operator.

        1. For the purposes of subsection (1)(c), a financial product market is not promoted to investors in New Zealand merely because it is accessible by those investors.

        2. Subsection (1) does not limit the circumstances in which a financial product market is operated in New Zealand for the purposes of this subpart.