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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Issue of licence

317: When licence may be issued for overseas-regulated market

You could also call this:

"Getting a licence to run a financial market in New Zealand if you're already allowed to in another country"

Illustration for Financial Markets Conduct Act 2013

The Minister can issue a licence to you to operate a financial market in New Zealand if you are already allowed to operate the same market in another country. You must apply under section 315 and the Minister must be satisfied that you will follow the rules and that the other country's rules are similar to New Zealand's rules. The Minister also wants to know that you will work with the FMA and share information.

You must promise to co-operate with the FMA and the Minister must check that your directors and owners are allowed to manage a company. The Minister checks if any of your directors, senior managers, or owners would be disqualified under section 14(2) of the Financial Service Providers Act or if they have been disqualified in another country.

When the Minister is considering your application, they must think about how you got permission to operate the market in the other country and what rules you have to follow to keep that permission. The Minister also wants to know how much supervision you get in the other country and if the FMA can work with the people who supervise you.

The Minister can still issue a licence under section 316 even if you are already allowed to operate a market in another country.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091467.

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316: When licence may be issued, or

"When the Minister can give you a licence to run a financial market"

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Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Issue of licence

317When licence may be issued for overseas-regulated market

  1. If an applicant is authorised to operate a financial product market in an overseas jurisdiction in which its principal place of business is located, the Minister, after receiving an application under section 315, may issue a licence authorising the applicant to operate the same market in New Zealand, by written notice to the applicant, if the Minister is satisfied that—

  2. there is no reason to believe that the applicant will not comply with the market operator obligations that will apply if the licence is granted; and
    1. the operation of the market in that jurisdiction is subject to requirements and supervision that are sufficiently equivalent, in relation to the degree of investor protection and market integrity they achieve, to the requirements and supervision to which financial product markets are subject under this Act in relation to those matters; and
      1. the applicant undertakes to co-operate with the FMA by sharing information and in other appropriate ways; and
        1. no director, senior manager, or controlling owner of the applicant—
          1. would be disqualified under section 14(2) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (if the applicant were a provider to which that Act applied); or
            1. has been disqualified from managing a body corporate under the laws of any other jurisdiction.

            2. In considering an application for a licence under this section or exercising another power under this subpart in relation to a market licensed under this section, the Minister must have regard to the following matters (in addition to the matters in section 308):

            3. the criteria that the licensed market operator or applicant satisfied to obtain an authorisation to operate the same market in the overseas jurisdiction in which its principal place of business is located; and
              1. the obligations the licensed market operator or applicant must continue to satisfy to keep the authorisation; and
                1. the level of supervision to which the operation of the market in that jurisdiction is subject; and
                  1. whether adequate arrangements exist for co-operation between the FMA and the authority that is responsible for that supervision.

                    1. Nothing in this section prevents the Minister from issuing a licence under section 316 to an applicant that is authorised to operate a financial product market in an overseas jurisdiction.