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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Holding and application of investor funds and property by derivatives issuers

448: Regulations regulating holding and application of investor funds and property by derivatives issuers

You could also call this:

"Rules for keeping investors' money and property safe with derivatives issuers"

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The Governor-General can make rules about how derivatives issuers handle money and property from investors. You need to know that these rules can cover things like how derivatives issuers receive and use money and property from investors. The rules can also say how derivatives issuers must put money and property into separate accounts to keep them safe. The Minister must talk to the FMA before recommending any new rules. Regulations made under this section are secondary legislation, which means they have to follow certain rules for publication, you can find more information about this in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091658.

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447: Application of regulations made under this subpart, or

"Rules made under this law apply to companies that issue derivatives, no matter what."

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448A: Application of subpart, or

"Rules for people with licences to manage financial benchmarks"

Part 6Licensing and other regulation of market services
Holding and application of investor funds and property by derivatives issuers

448Regulations regulating holding and application of investor funds and property by derivatives issuers

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister in accordance with subsection (2), make regulations for the purposes of—

  2. regulating the receipt of money and property from, or on account of, investors by derivatives issuers and the application of that money and property:
    1. prescribing requirements relating to the deposit of that money and property in separate investors' funds accounts or safe custody:
      1. specifying the duties and obligations of derivatives issuers in relation to investors' funds accounts, including obligations to make payments into those accounts:
        1. providing for the protection of money deposited into investors' funds accounts and property deposited in safe custody from claims against derivatives issuers:
          1. providing for the investment of money referred to in paragraph (d):
            1. providing for the FMA to carry out functions under the regulations, and its powers and procedures in doing so:
              1. stating which provisions are Part 6 services provisions for the purposes of this Act.

                1. The Minister must consult the FMA before making a recommendation under this section.

                2. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                Notes
                • Section 448(1)(a): amended, on , by section 78 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                • Section 448(3): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).