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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Monitoring of market operator obligations

338: FMA to carry out market operator obligations reviews

You could also call this:

"The FMA checks if market operators are doing their job properly."

Illustration for Financial Markets Conduct Act 2013

The FMA can check how well a licensed market operator is doing its job at any time. You need to know the FMA checks a licensed market operator's work at least once for each reporting period. The FMA looks at how well the operator is meeting its obligations.

When the FMA checks, it can look at the operator's most recent report and other information provided under section 337. The FMA can also look at any other information it thinks is relevant. After checking, the FMA gives the operator a draft report and considers any comments the operator makes.

The FMA does not check certain parts of a licensed market operator's work, like a designated FMI, under this rule, as defined in section 5 of the Financial Market Infrastructures Act 2021.

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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=DLM4091494.

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337: Licensed market operator must give report on compliance with market operator obligations to FMA, or

"Licensed market operators must report to the FMA how they followed the rules within 3 months of their financial year ending."

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339: FMA must make written report on market operator obligations review, or

"The law says the FMA must write a report about how well market operators are doing their job."

Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Monitoring of market operator obligations

338FMA to carry out market operator obligations reviews

  1. The FMA may, at any time, carry out a review of how well a licensed market operator is meeting any or all of its market operator obligations.

  2. The FMA must carry out a review of how well a licensed market operator is meeting all of its market operator obligations at least once in respect of each reporting period of the licensed market operator.

  3. The FMA—

  4. may, in carrying out the review, take into account the most recent report and other information provided under section 337 and any other information it considers appropriate; and
    1. must, after carrying out the review, provide a draft written report on its review to the licensed market operator and take into account any submissions made by the licensed market operator within the reasonable period for submissions specified by the FMA.

      1. The FMA must not carry out a review of a designated FMI (as defined in section 5 of the Financial Market Infrastructures Act 2021) of a licensed market operator under this section (but nothing in this subsection prevents a review under that Act being carried out in conjunction with a review under this section).

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      Notes
      • Section 338(4): amended, on , by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).