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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Monitoring and enforcement of licences - Action plan

419: Consequences of failure to submit action plan, rejection of action plan, or failure to comply with action plan

You could also call this:

"What happens if you don't follow the rules about action plans with the Financial Markets Authority"

Illustration for Financial Markets Conduct Act 2013

If you fail to submit an action plan on time, the Financial Markets Authority (FMA) may take action against you. This can happen if you do not send in your plan when the FMA asks you to, or if the FMA does not accept your plan. The FMA can also take action if they think you are not following your action plan.

The FMA has certain powers it can use in these situations, which are outlined in section 414(2)(a) or (c) or (3). If you break the rules in section 417 or section 418, you may also have to deal with civil liability, which is explained in subpart 3 of Part 8.

You should be aware that not following the rules can have serious consequences, and the FMA can take action to make sure you comply with the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091606.

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418: Approval, amendment, or rejection of action plan, or

"The Financial Markets Authority decides what happens to your action plan: they can approve, change or reject it."

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420: Directions, or

"Following official instructions to fix a problem or stop something wrong from happening"

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

419Consequences of failure to submit action plan, rejection of action plan, or failure to comply with action plan

  1. The FMA may exercise a power under section 414(2)(a) or (c) or (3) if—

  2. a person fails to submit an action plan or amended action plan within the time and in the manner specified by the FMA; or
    1. the FMA rejects an action plan; or
      1. the FMA is satisfied that an action plan has not been complied with.

        1. A contravention of section 417 or 418 may also give rise to civil liability (see subpart 3 of Part 8).