Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

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

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The Minister can give a direction to a licensed market operator if they think the operator is not meeting its obligations. You need to know that the Minister will consider advice from the FMA before giving a direction. The Minister can give a direction if the operator has not provided a plan when required under section 340 or section 341, or if the FMA has rejected the operator's plan, or if the operator has not followed its approved plan.

The direction will tell the licensed market operator what actions to take to fix any problems and meet its obligations. The direction will also say when the operator must take these actions.

The licensed market operator must follow the direction given by the Minister.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM4091498.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

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

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

Next

343: Minister may vary, suspend, or cancel licence, or

"The Minister can change, stop, or cancel a licence if rules are not followed."

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

342Minister may give market operator obligations direction to licensed market operator

  1. The Minister may, after having regard to any advice of the FMA, give a written direction to a licensed market operator if—

  2. the Minister considers that the licensed market operator has failed or is failing to meet any 1 or more of its market operator obligations; and
    1. any of the following has occurred:
      1. the licensed market operator has not provided an action plan when required under section 340; or
        1. the licensed market operator has not provided an amended action plan when required under section 341; or
          1. the FMA has rejected a licensed market operator's action plan; or
            1. the licensed market operator has not complied with an approved action plan.

            2. The direction may specify—

            3. the actions that the licensed market operator must take to remedy any failure or to avoid any further failure to meet any 1 or more of its market operator obligations; and
              1. the timetable for taking those actions.

                1. The licensed market operator must comply with the direction.

                Compare