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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 - Approval of contractual market rules

330: Approval process for proposed market rules and rule changes

You could also call this:

"How the Financial Markets Authority approves or declines new market rules"

Illustration for Financial Markets Conduct Act 2013

When you apply for approval of proposed market rules or rule changes, the Financial Markets Authority (FMA) must do one of three things within a certain time. The FMA can approve the market rules or rule change, extend the time they have to make a decision, or decline to approve them. You must make your application in the way the FMA says.

The FMA has 40 working days to make a decision, or 60 working days if they extend the time. If you change and resubmit your application during this time, it does not start a new decision-making period if the changes are because of comments from the FMA or are very minor, like fixing typos. You can see how this rule is similar to a rule in the Securities Amendment Act 1988.

The FMA's decision time can be extended, and they must follow the rules when making their decision. You should know that the FMA has to make their decision based on the application you give them. The application process is an important part of how the FMA approves market rules and rule changes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091484.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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"When do market rules actually start working?"

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331: Approval of proposed market rules and changes, or

"The Financial Markets Authority checks and approves new market rules to ensure they are fair and good for everyone."

Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Approval of contractual market rules

330Approval process for proposed market rules and rule changes

  1. If a person applies for the approval of any proposed market rules or proposed rule change by the FMA, the FMA must, within the approval period,—

  2. approve the market rules or rule change; or
    1. extend the approval period; or
      1. decline to approve the market rules or rule change.

        1. An application under this section must be made in the manner specified by the FMA.

        2. The approval period is 40 working days, or (if extended under subsection (1)(b)) 60 working days, after the FMA receives the application.

        3. If, during the approval period, the applicant revises and resubmits the proposed market rules or rule change, then this does not result in the commencement of a new approval period under this section if the revision—

        4. is made in response to comments by the FMA; or
          1. consists of immaterial changes (for example, typographical changes).

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