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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

340: FMA may require licensed market operator to submit action plan on failure to meet market operator obligations

You could also call this:

"If a market operator breaks the rules, they must give the FMA a plan to fix it."

Illustration for Financial Markets Conduct Act 2013

If you are a licensed market operator and the FMA thinks you have not met your obligations, they can ask you to submit an action plan. The FMA will send you a written notice that tells you what you have done wrong and when you need to submit your action plan. You must then provide the FMA with a plan that says what you will do to fix the problem and when you will do it, or you can give them a written report that explains why you do not think you have done anything wrong.

You need to do this as soon as possible, but before the date the FMA specifies. Your action plan must include the actions you will take to fix the problem and a timetable for when you will take those actions. If you choose to give the FMA a written report instead, it must identify any problems the FMA has mentioned that you have not addressed and explain why you do not think they are problems or why you have not provided a plan to fix them.

The FMA has the power to do this after they have carried out a review under section 338(1) or (2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091496.

Topics:
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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."

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341: Approval, amendment, or rejection of action plan, or

"The Financial Markets Authority checks and decides what to do with your action plan."

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

340FMA may require licensed market operator to submit action plan on failure to meet market operator obligations

  1. If the FMA considers, after carrying out a review under section 338(1) or (2), that a licensed market operator has failed or is failing to meet any 1 or more of its market operator obligations, it may, by written notice, require the licensed market operator to submit an action plan to the FMA.

  2. The notice must—

  3. set out the details of the failure; and
    1. specify the date by which the action plan must be submitted to the FMA.

      1. The licensed market operator must, as soon as practicable but in any case before the date specified by the FMA, do either or both of the following things:

      2. provide an action plan that addresses the failure and specifies—
        1. the actions that the licensed market operator proposes to take to remedy the failure or to avoid any further failure; and
          1. the timetable for taking those actions:
          2. provide the FMA with a written report that—
            1. identifies any matter that has not been addressed by an action plan; and
              1. explains why the licensed market operator does not consider that matter to be a failure or gives any other reasons why the licensed market operator has not provided an action plan on the matter.

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