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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Control limits on licensed market operators

347: Application for approval to exceed control limit

You could also call this:

"Asking to break a company ownership rule: how to apply for special permission"

Illustration for Financial Markets Conduct Act 2013

You can apply to the Financial Markets Authority (FMA) to let someone or a group exceed a control limit for a company. The FMA will then give your application to the Minister with their advice on it. The Governor-General can approve your application if the Minister recommends it.

You need to follow the rules made under section 344 to apply. The Minister will only recommend approval if they have talked to the company about your application and think it is in the public's best interest. The Governor-General's approval can have conditions and can apply from an earlier date.

The approval only applies to the control limit and not to any other laws. If you do not follow the conditions of the approval, it will not be valid. An order made under this section is secondary legislation, which means it is a type of law, and you can find out more about this in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091508.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Control limits on licensed market operators

347Application for approval to exceed control limit

  1. A person may apply to the FMA for approval for any person or class of persons to exceed a control limit for a body corporate that applies under regulations made under section 344.

  2. The FMA must, within a reasonable time, give the application to the Minister with advice about the application.

  3. The Governor-General may, by Order in Council made on the recommendation of the Minister, approve an application under subsection (1) and specify the terms and conditions (if any) applying to the approval.

  4. The Minister may not make a recommendation for the purposes of subsection (3) unless,—

  5. if the body corporate is not the applicant or 1 of the applicants for the approval, he or she has consulted the body corporate on the application; and
    1. he or she is satisfied that it is in the public interest to make the recommendation.

      1. An approval granted under subsection (3)—

      2. may have retrospective effect; but
        1. is of no effect if any term or condition of the approval has not been complied with.

          1. An approval granted under subsection (3) is for the purposes of the control limit only, and not for the purposes of any other enactment.

          2. An order under this section—

          3. is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); but
            1. may commence in accordance with subsection (5)(a), even if it is not yet published.

              Compare
              Notes
              • Section 347(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).