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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

333: Power of FMA to request changes to market rules on certain matters

You could also call this:

"The FMA can ask market operators to change their rules to help keep markets fair and safe."

Illustration for Financial Markets Conduct Act 2013

The FMA can ask a licensed market operator to change its market rules if it thinks this is necessary. You might wonder why the FMA would do this - it's to help achieve the goals of this part of the law or to ensure market operators meet their obligations. The FMA must do a review under section 338(1) or (2) before making this request, unless it's urgent.

If the FMA makes a request, the licensed market operator must respond within 60 working days. You can respond in one of two ways: by proposing a rule change to the FMA under section 330, or by providing a written report explaining why you haven't made the change. This report must identify any unaddressed matters, explain why they're not being addressed, and suggest alternative ways to deal with them.

The FMA can only ask for changes to certain matters, which are set out in section 328. The FMA cannot request changes to matters outside of these areas.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091487.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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332: Notice of decision on rules, or

"The Financial Markets Authority tells people its decision about new market rules in writing."

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334: Overseas-regulated markets must give notice of market rules and rule changes to FMA, or

"Overseas markets must tell the Financial Markets Authority about their rules and any changes"

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

333Power of FMA to request changes to market rules on certain matters

  1. The FMA may, if it considers it necessary or desirable to promote any of the purposes of this Part or the meeting of any of the market operator obligations, request a licensed market operator to prepare a draft change to the market rules for any of its licensed markets on a specified matter.

  2. The FMA may make a request under subsection (1) by written notice to the licensed market operator only—

  3. after carrying out a review under section 338(1) or (2); or
    1. if it believes on reasonable grounds that it is urgent to do so at any other time.

      1. The licensed market operator must, as soon as practicable but, in any case, before the expiry of 60 working days after receiving the written notice (or any further time allowed by the FMA), do either or both of the following things:

      2. provide a proposed rule change to the FMA under section 330 that addresses the requested matter:
        1. provide the FMA with a written report that—
          1. identifies any requested matter or matters that have not been addressed by a proposed rule change; and
            1. explains why the licensed market operator has not done so; and
              1. suggests alternative ways (if any) by which the matter or matters are being or may be dealt with; and
                1. sets out if, when, and how the licensed market operator proposes to provide for the matter or matters (if at all).

                2. This section does not allow the FMA to request a draft market rule or change on a matter that is not within the matters set out in section 328.

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