Financial Markets Conduct Act 2013

Dealing in financial products on markets - Transfer of transferable financial products - Transfer of specified financial products by electronic means

376: Approval of electronic transfer system

You could also call this:

"The Governor-General can approve a computer system that helps buy and sell investments electronically."

Illustration for Financial Markets Conduct Act 2013

The Governor-General can approve a system that helps transfer financial products electronically. You can think of financial products like investments or loans. The Governor-General makes this decision based on advice from the Minister, who gets a recommendation from the Financial Markets Authority (FMA).

The FMA must talk to people who will be affected by this decision before making a recommendation. This is to make sure everyone who needs to know is informed. If the FMA forgets to do this, it does not change the decision that is made.

When the Governor-General approves a system, it becomes a type of law called secondary legislation, which has its own rules for publication, as outlined in Part 3 of the Legislation Act 2019.

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 It might be out of date or be missing some parts.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 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091546.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

375: Transfers to be instruments of transfer for purposes of other enactments and instruments, or

"Transfers of financial products are treated as official documents under the law."

377: Specified financial products may be transferred under approved system, or

"Some investments can be bought or sold using a special approved system."

Part 5Dealing in financial products on markets
Transfer of transferable financial products: Transfer of specified financial products by electronic means

376Approval of electronic transfer system

The Governor-General may, on the advice of the Minister given in accordance with a recommendation of the FMA, by Order in Council, approve a system or systems that is or that are wholly or partly electronic for the transfer of specified financial products.
A system of transfer may be approved under this section by reference to the name of the system or any name by which it is commonly known.
A system of transfer may be approved under this section whether or not it also involves the use of a procedure or part of a procedure for the transfer of financial products that is authorised under this Act or otherwise.
The FMA must not make a recommendation under subsection (1) unless the FMA has consulted the persons or representatives of the persons that the FMA considers will be substantially affected by the Order in Council.
A failure to comply with subsection (4) does not affect the validity of an Order in Council made under this section.
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare

1991 No 119 s 7(1)–(3), (6)–(8)

Notes

Section 376(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).