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Financial Markets Conduct Act 2013

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

421: Consequences of failure to comply with directions

You could also call this:

"What happens if you don't follow the rules you're given by the Financial Markets Authority"

Illustration for Financial Markets Conduct Act 2013

If you refuse or fail to follow a direction under section 414(2)(c) without a good reason, you commit an offence. You can be fined up to $300,000 if you are convicted. The Financial Markets Authority, or FMA, decides if you have been fined.

If the FMA thinks you have not followed a direction under section 414(2)(c), they can use other powers they have, like those under section 414(2)(a) or (3). This means they can take further action against you.

You might also have to deal with civil liability if you break the rules, which is explained in subpart 3 of Part 8 and section 420.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091609.

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420: Directions, or

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

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422: Application of subpart, or

"Rules for people with licences to provide certain financial services"

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

421Consequences of failure to comply with directions

  1. A person that refuses or fails, without reasonable excuse, to comply with a direction under section 414(2)(c) commits an offence and is liable on conviction to a fine not exceeding $300,000.

  2. If the FMA is satisfied that a direction under section 414(2)(c) has not been complied with, the FMA may (without limitation) exercise a power under section 414(2)(a) or (3).

  3. A contravention of section 420 may also give rise to civil liability (see subpart 3 of Part 8).