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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Monitoring and enforcement of licences - FMA's powers in case of contravention of market services licensee obligation, material change, etc

414: FMA's powers in case of contravention of market services licensee obligation, material change, etc

You could also call this:

"What happens if you break a market rule or something important changes"

Illustration for Financial Markets Conduct Act 2013

The FMA can take action if you break a market services rule or if something important changes. You might have broken a rule or given false information under section 395 or 404. The FMA can also act if they think you are likely to break a rule or if something important is likely to change.

The FMA can send you a written notice telling you what to do. They can tell you off, ask you to make a plan to fix the problem, or give you a direction to follow. They want to make sure you follow the rules and do the right thing.

The FMA can also suspend or cancel your licence if you break a rule or do not meet the requirements. They check if you meet the requirements under section 396(a) to (g) or 400(1)(a) to (e) or (1A)(a) to (e). They can also change the conditions of your licence, as stated in section 403.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091600.

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Part 6Licensing and other regulation of market services
Monitoring and enforcement of licences: FMA's powers in case of contravention of market services licensee obligation, material change, etc

414FMA's powers in case of contravention of market services licensee obligation, material change, etc

  1. The FMA may exercise a power under subsection (2) if it is satisfied that—

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

          1. The FMA may, by written notice to the licensee or an authorised body and otherwise in the prescribed manner, do 1 or more of the following:

          2. censure the licensee or authorised body (or both):
            1. require the licensee or authorised body (or both) to submit an action plan to the FMA within the time and in the manner specified by the FMA:
              1. give a direction to the licensee or authorised body (or both).

                1. The FMA may also, by written notice to the licensee and otherwise in the prescribed manner, suspend (for a specified period or until a specified requirement is met and in relation to the licensee, any authorised body or bodies, or all of them) or cancel the licence of the licensee if it is satisfied that—

                2. subsection (1)(a), (b), or (c) applies; and
                  1. the licensee or an authorised body does not meet, or no longer meets, the requirements referred to in section 396(a) to (g) or 400(1)(a) to (e) or (1A)(a) to (e) (where those provisions are applied with all necessary modifications as if references to the applicant or body corporate (or entity) were references to the licensee or authorised body respectively).

                    1. Section 403 also provides for the FMA to vary, revoke, add to, or substitute any conditions of a licence (for example, by removing an authorisation for an authorised body).

                    Notes
                    • Section 414(3)(b): replaced, on , by section 27 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).