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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Monitoring and enforcement of licences - Reports

412: Licensee must report certain matters

You could also call this:

"People with a licence must tell the authorities if something goes wrong or a big change happens"

Illustration for Financial Markets Conduct Act 2013

If you have a licence, you must have ways to check you are doing what you are supposed to do. You must also be able to identify any big changes that happen. You need to watch for things like breaking the rules or something big changing. If you think something big has happened, like you broke a rule or gave false information under section 395 or 404, you must tell the FMA as soon as you can.

You must send a report to the FMA with details of what you think happened and why you think it happened. If you are in charge of a special kind of investment scheme, you might need to send the report to the FMA and someone else called the supervisor. You must send the report as soon as you can after you think something big has happened.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091597.

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411: Licensee must deliver reports to FMA, or

"Licensees must send required reports to the Financial Markets Authority on time"

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"You can't use a report against the person who gave it to you in most criminal cases."

Part 6Licensing and other regulation of market services
Monitoring and enforcement of licences: Reports

412Licensee must report certain matters

  1. Every licensee must ensure that there are in place effective methods for—

  2. monitoring the licensee's and every authorised body's compliance with the market services licensee obligations; and
    1. identifying material changes in circumstances.

      1. Subsection (3) applies if a licensee believes that—

      2. the licensee or an authorised body has contravened, may have contravened, or is likely to contravene a market services licensee obligation in a material respect; or
        1. a material change of circumstances has occurred, may have occurred, or is likely to occur in relation to the licence; or
          1. the information provided under section 395 or 404 is false or misleading in a material particular.

            1. The licensee must, as soon as practicable after the licensee forms the belief referred to in subsection (2), send a report containing details of the belief, the licensee's grounds for the belief, and all other prescribed information—

            2. to the FMA; or
              1. if the licensee is a manager of a registered scheme (other than a restricted scheme),—
                1. to the FMA and the supervisor, if the report is of a contravention or possible contravention of a market services licensee obligation imposed by a condition of the licence; or
                  1. to the supervisor, if the report is of a contravention or possible contravention of any other market services licensee obligation.