Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Changes to licences

323: Minister may suspend or cancel licence

You could also call this:

"The Minister can stop or cancel a company's licence if they break the rules or can't run their business properly."

Illustration for Financial Markets Conduct Act 2013

The Minister can suspend or cancel a licence by sending a written notice to the licensed market operator. You might wonder why the Minister would do this - it could be because the licensed market operator asked them to, or because they stopped running their financial product market business. The Minister can also suspend or cancel a licence if the licensed market operator is no longer registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, or if they do not meet certain requirements, such as those in section 317(1)(d). The Minister can also take this action if the licensed market operator becomes insolvent, or in accordance with section 343. If a licence was issued under section 317 for overseas-regulated markets, the Minister can suspend or cancel it if the licensed market operator is no longer allowed to run a financial product market in their main country of business, or if the rules change in that country and the Minister is not satisfied with the new rules, particularly those in section 317(1)(b).

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091476.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

322: Variation of conditions, or

"The Minister can change the rules of a licence at any time and you will be told in writing."

324: Procedure for varying of conditions or suspension or cancellation of licence, or

"How the Minister can change, suspend or cancel your licence"

Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Changes to licences

323Minister may suspend or cancel licence

The Minister may, by written notice to the licensed market operator, suspend (for a specified period or until a specified requirement is met) or cancel a licence—
if the licensed market operator, by written notice, requests the Minister to do so; or
if the Minister is satisfied that the licensed market operator has ceased to carry on the business of operating the financial product market; or
if—
1. the licensed market operator has ceased to be registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (in the case of a licence issued under section 316); or
2. the Minister is satisfied that the licensed market operator has ceased to meet the requirement in section 317(1)(d) (in the case of a licence issued under section 317 (overseas-regulated markets)); or
if the licensed market operator has become subject to an insolvency event; or
in accordance with section 343; or
in the case of a licence issued under section 317 (overseas-regulated markets), if—
1. the licensed market operator ceases to be authorised to operate a financial product market in the overseas jurisdiction in which the licensed market operator's principal place of business is located; or
2. there is a change to the regulatory regime applying in relation to the market to which the licence relates in the jurisdiction in which the licensed market operator's principal place of business is located and, because of that change, the Minister is not satisfied as to the matters in section 317(1)(b).