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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Operation of licensed markets

362: Grounds for continuous disclosure direction

You could also call this:

"When to get in trouble for not sharing important information with investors"

Illustration for Financial Markets Conduct Act 2013

The Financial Markets Authority (FMA) can give a direction if you have not followed the rules about telling people information. The FMA must think about the purpose of this part of the law and other important things when deciding whether to give a direction. You can get a direction if you have broken the rules about telling people information, or if the people in charge of the market have not made you tell people important information.

The FMA can also give a direction if the people in charge of the market are not making you tell people important information. The FMA must be satisfied that giving a direction is necessary to protect people who are buying or selling financial products. The FMA must also think that giving a direction is the best way to deal with the situation, and that there is no better way to solve the problem.

The FMA looks at what is said in section 361 and follows the rules in sections 364 to 366 when giving a direction. The FMA also considers the purpose of the law, which is stated in sections 3 and 4. You can get a direction if the FMA is not happy with how you are telling people information, and if the FMA thinks it needs to step in to protect people.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091526.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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361: FMA may give directions to licensed market operators, or

"The referee of financial markets can give orders to market operators to keep things fair and safe."

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363: Grounds for other directions, or

"When the FMA needs to protect people buying or selling financial products, they can give special instructions."

Part 5Dealing in financial products on markets
Operation of licensed markets

362Grounds for continuous disclosure direction

  1. A direction on the grounds in this section is a continuous disclosure direction.

  2. A direction may be given under section 361 in accordance with sections 364 to 366 if the FMA—

  3. has regard to the purpose of this Part (and the main and additional purposes of the Act stated in sections 3 and 4) and any other matters it considers relevant; and
    1. is satisfied that 1 of the following grounds applies:
      1. a listed issuer has contravened a continuous disclosure obligation or a term or condition of a continuous disclosure exemption; or
        1. a determination by a licensed market operator to which section 359 applies does not achieve appropriate continuous disclosure by a listed issuer of material information that is not generally available to the market; or
          1. the licensed market operator's administration of the continuous disclosure provisions of its listing rules does not achieve appropriate continuous disclosure by a listed issuer of material information that is not generally available to the market; and
          2. is also satisfied that the direction is necessary or desirable to protect people who are trading the quoted financial products or the class of quoted financial products and that there is no more appropriate course of action to address the situation.

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