Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Issue of licences, conditions, and duration - Conditions of licence

406: Consequences of contravening conditions

You could also call this:

"What happens if you break the rules of your licence?"

Illustration for Financial Markets Conduct Act 2013

If you break a condition of your licence, the Financial Markets Authority (FMA) can take action against you. The FMA may use a power under subpart 3 to make you fix the problem, like making you submit a plan to correct it. This plan is like a roadmap to get you back on track.

If you contravene a condition, you might also face civil liability, which is a way of saying you could be held responsible and have to pay for what you did wrong. The FMA can impose this under subpart 3 of Part 8, which is a set of rules that explains how this works. You should be aware that breaking a condition can have serious consequences.

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 It might be out of date or be missing some parts.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=DLM4091587.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

405: Procedure for variation of conditions, or

"How the FMA changes the rules for a licence holder"

406A: Effect of condition requiring giver of advice or interposed person to be authorised by licence or registered, or

"Rules for people giving financial advice who need a licence or to be registered"

Part 6Licensing and other regulation of market services
Issue of licences, conditions, and duration: Conditions of licence

406Consequences of contravening conditions

If a licensee or an authorised body contravenes a condition of a licence, the FMA may exercise a power under subpart 3 (for example, it may require the licensee or authorised body to submit an action plan).
Subsection (1) does not limit subpart 3 of Part 8 (which provides for civil liability that may be imposed in relation to a contravention of a condition imposed by regulations).