Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - FMA's enforcement powers - Stop orders

463: Terms of stop order

You could also call this:

"What a stop order can do to control buying and selling of financial products"

Illustration for Financial Markets Conduct Act 2013

A stop order can do one or more things to an offer or financial product. It can stop people from buying or selling certain financial products while the order is in force. You can find out what kind of offer or financial product this is by looking at section 462(1).

A stop order can also stop someone who is offering financial products from accepting your application to buy them. It can stop the distribution of certain documents, like a Product Disclosure Statement, while the order is in force. This can include stopping the distribution of restricted communications, which are explained in section 462(1)(f).

A stop order can also stop people from putting more money into certain financial products. It can stop the supply of certain financial services while the order is in force.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091669.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

462: When FMA may make stop orders, or

"When the Financial Markets Authority can stop something that might be unfair or wrong"

Next

464: Meaning of restricted communication, or

"What 'restricted communication' means: talking about financial products or services in a way that's controlled by law"

Part 8Enforcement, liability, and appeals
FMA's enforcement powers: Stop orders

463Terms of stop order

  1. A stop order may, in relation to the offer, financial products, registered scheme, or market or other financial services referred to in section 462(1), do 1 or more of the following:

  2. prohibit offers, issues, sales, or other acquisitions or disposals of financial products specified in the order from being made while the order is in force:
    1. prohibit an offeror from accepting applications for financial products specified in the order while the order is in force:
      1. prohibit the distribution of 1 or more of the following while the order is in force:
        1. a PDS or any other disclosure document:
          1. a restricted communication referred to in section 462(1)(f):
            1. any restricted communication that relates to the offer of financial products, or supply of financial services, specified in the order:
            2. prohibit a person from accepting further contributions, investments, or deposits in respect of financial products specified in the order while the order is in force:
              1. prohibit the supply of financial services specified in the order from being made while the order is in force.