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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Approval of contractual market rules

331: Approval of proposed market rules and changes

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority (FMA) must approve proposed market rules or changes to rules, unless they think it is not in the public's best interest. You can find out what the public interest means by looking at the purposes of the Financial Markets Conduct Act 2013, which are stated in sections 3 and 4. The FMA also considers if the rules are consistent with other obligations, such as those in section 314.

When the FMA is considering approving rules for a new market, they look at any previously approved rules that might also apply to that market. The FMA's approval is a type of law, and you can learn more about this in Part 3 of the Legislation Act 2019. The approval does not have to include the actual rules or changes that were approved.

The FMA has to think about a few things when deciding whether to approve proposed market rules, including if the rules will help listed companies share important information with the market. You can find out more about what this means by looking at the purposes of the Financial Markets Conduct Act 2013, which are stated in sections 3 and 4, and any other matters the FMA thinks are relevant. The FMA's job is to make sure the market rules are fair and work well for everyone.

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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=DLM4091485.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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330: Approval process for proposed market rules and rule changes, or

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

331Approval of proposed market rules and changes

  1. The FMA must approve the proposed market rules or rule change provided to it under section 330 unless the FMA is satisfied that—

  2. it is not in the public interest to do so after having had regard to—
    1. the purposes of this Part (and the main and additional purposes of the Act stated in sections 3 and 4); and
      1. the consistency of the rules or the rule change with the obligations under section 314; or
      2. (if subpart 4 would apply to the rules once approved) the rules, or the rules as changed, for the financial product market will not provide appropriate continuous disclosure by listed issuers of material information that is not generally available to the market, after having regard to—
        1. the purposes of this Part (and the main and additional purposes of the Act stated in sections 3 and 4); and
          1. any other matters that the FMA considers relevant.

          2. The FMA must, in considering whether to approve proposed market rules for a new market, take into account any previously approved market rules that the applicant proposes to also apply to the relevant market.

          3. An approval under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

          4. However, the approval does not need to incorporate the market rules or rule change that have been approved.

          Compare
          Notes
          • Section 331(3): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
          • Section 331(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).