Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Operation of licensed markets

367: Effect of directions to licensed market operator

You could also call this:

"What to do when a licensed market operator gets a direction from the Financial Markets Authority"

Illustration for Financial Markets Conduct Act 2013

If you get a direction under section 361, you must follow it for the time stated in the direction, which can be up to 15 working days. During this time, you must not let any trading happen that goes against the direction. You have to comply with the direction and make sure no one trades in a way that is contrary to it.

If the Financial Markets Authority thinks the direction should last longer than 15 working days, they can ask the court to make an order. The court can then decide how long you must follow the direction. The court will choose a time period that it thinks is right.

You can find more information about this by looking at the section 361 direction, which explains what you need to do.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091531.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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366: Notice and opportunity to be heard and represented after FMA gives direction, or

"The law says the FMA must tell you what's happening and let you have a say if they make a decision that affects you."

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368: Provisions as to directions, or

"The law lets the FMA change or cancel instructions they give to people who run financial markets."

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

367Effect of directions to licensed market operator

  1. A direction under section 361 has effect for the period specified in it (which may be a period of up to 15 working days) and, during that period, the licensed market operator must comply with the direction and must not allow any trading that is contrary to the direction to take place.

  2. If the FMA considers that the direction should have effect for a period longer than 15 working days, it may apply to the court for, and the court may make, an order that the licensed market operator comply with the direction for the period that the court thinks fit.

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