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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

341: Approval, amendment, or rejection of action plan

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a licensed market operator and you submit an action plan, the Financial Markets Authority (FMA) can approve it, ask you to change it and send it back, or reject it. The FMA will tell you what to do with your action plan. You might need to make changes to your action plan and send it back to the FMA by a certain date.

If the FMA asks you to change your action plan, you must either send back a new version that fixes the problems or write a report explaining why you do not think the changes are needed. You have to be clear about what you have changed and what you have not changed.

If the FMA approves your action plan, you must follow it. You and the FMA can agree to make changes to the action plan at any time. You can see how this rule is similar to an older rule, s 36YE, by looking at the comparison.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091497.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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340: FMA may require licensed market operator to submit action plan on failure to meet market operator obligations, or

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

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342: Minister may give market operator obligations direction to licensed market operator, or

"The Minister can tell a market operator what to do if it's not following the rules."

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

341Approval, amendment, or rejection of action plan

  1. If a licensed market operator submits an action plan, the FMA may—

  2. approve the action plan; or
    1. require the licensed market operator to amend the action plan and resubmit it to the FMA by a specified date for approval or rejection; or
      1. reject the action plan.

        1. If the FMA requires the licensed market operator to amend an action plan provided to the FMA, the licensed market operator must do either or both of the following things:

        2. provide an amended action plan that addresses the matter required to be amended:
          1. provide the FMA with a written report that—
            1. identifies any matter that has not been addressed by an amendment to the action plan first provided; and
              1. explains why the licensed market operator does not consider that the matter needs amending or gives any other reasons why the licensed market operator has not provided an amendment addressing the matter.

              2. If the FMA approves the action plan (whether as first provided or after amendment), the licensed market operator must comply with the action plan.

              3. An action plan that has been approved by the FMA may be varied at any time by agreement between the licensed market operator and the FMA.

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