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Financial Markets Conduct Act 2013

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

465: FMA may make interim stop order pending exercise of powers

You could also call this:

"The FMA can make a temporary stop order to protect the public while they decide what to do next."

Illustration for Financial Markets Conduct Act 2013

The FMA can make a special order called an interim stop order if they are thinking about using a certain power. They can do this if they think it is a good idea for the public. You can find out more about this kind of order in section 463 and the power they are thinking about using in section 462. The FMA thinks making this order is desirable in the public interest.

The interim stop order is in force from when it is made until 15 working days later, or a later date the FMA decides. The FMA can choose a later date if they need more time to think about the matter, but it must be within 30 working days. They can do this without hearing from the people affected first.

The FMA must give the people affected a chance to comment and be heard after making the order, even though they did not have to do this before making the order, as stated in section 475. You can find more information about similar laws in the past, like the one mentioned in 1978 No 103.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091673.

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466: Persons to whom stop orders and interim stop orders may apply, or

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

465FMA may make interim stop order pending exercise of powers

  1. The FMA may make an interim order (an interim stop order) of the kind referred to in section 463 that is in force for the period referred to in subsection (2) if—

  2. the FMA is considering, at any time, whether it may exercise a power under section 462; and
    1. the FMA considers that making an interim stop order is desirable in the public interest.

      1. An interim stop order is in force from the time at which it is made until the close of—

      2. the date that is 15 working days after the day on which it is made; or
        1. a later date specified by the FMA by notice to the issuer, offeror, or service provider to which the order relates.

          1. For the purposes of subsection (2)(b),—

          2. the FMA may specify a later date if the FMA is of the opinion that it is not reasonably practicable for it to complete its consideration as referred to in subsection (1)(a) within the 15-working-day period referred to in subsection (2)(a); and
            1. the later date must be a date that is no more than 30 working days after the day on which the interim stop order is made.

              1. The FMA—

              2. may act under subsection (1) or (2)(b) without giving the issuer, offeror, or service provider to which the order relates an opportunity to make submissions to, or be heard before, the FMA in respect of the matter (and, accordingly, section 475 does not apply); but
                1. must, after acting under subsection (1) or (2)(b), give that issuer, offeror, or service provider or that person's representative an opportunity to make written submissions and to be heard on the matter.

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