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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

415: Procedure for exercising powers

You could also call this:

"How the FMA must follow a process before using certain powers"

Illustration for Financial Markets Conduct Act 2013

The FMA cannot use a power under section 414 unless they do certain things. You need to know that the FMA must give the licensee at least 10 working days' written notice before using the power. This notice must say that the FMA may use the power and why they may use it.

The FMA must also give the licensee a chance to make written submissions about the matter within the 10 working day notice period. This means you can tell the FMA what you think about the matter before they make a decision.

Before the FMA uses a certain power under section 414(3), they must think about whether it would be better to use a different power under section 414(2) instead.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091601.

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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

415Procedure for exercising powers

  1. The FMA must not exercise a power under section 414 unless—

  2. the FMA gives the licensee or an authorised body no less than 10 working days' written notice of the following matters before it exercises the power:
    1. that the FMA may exercise the power; and
      1. the reasons why it may exercise the power; and
      2. the FMA gives the licensee or authorised body or the licensee's or authorised body's representative an opportunity to make written submissions on the matter within that notice period.

        1. The FMA must, before exercising a power under section 414(3), consider whether, in the circumstances, it would be more appropriate to exercise a power under section 414(2).