Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - Civil liability - Declarations of contravention and pecuniary penalty orders

492: Considerations for court in determining pecuniary penalty

You could also call this:

"How the court decides a fair fine"

Illustration for Financial Markets Conduct Act 2013

When the court is deciding a suitable fine, you need to think about all the important factors. This includes what the law is trying to achieve, as stated in sections 3 and 4. You also have to consider what happened and how bad the mistake was.

The court thinks about who was hurt or affected by what happened, and whether the person who made the mistake tried to fix things. They look at the circumstances and whether the person has done something similar before.

In some cases, the court considers the role of a director and their relationship to the people involved in the mistake.

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 It might be out of date or be missing some parts.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=DLM4091713.

Topics:
Crime and justice > Courts and legal helpMoney and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

491: Guidance for court on how to determine gains made or losses avoided for purposes of maximum amount, or

"How courts calculate gains or losses when things aren't fair in financial deals"

Next

493: Court must order that recovery from pecuniary penalty be applied to FMA's actual costs, or

"Court must use penalty money to pay Financial Markets Authority's court costs first"

Part 8Enforcement, liability, and appeals
Civil liability: Declarations of contravention and pecuniary penalty orders

492Considerations for court in determining pecuniary penalty

  1. In determining an appropriate pecuniary penalty, the court must have regard to all relevant matters, including—

  2. the purposes stated in sections 3 and 4 and any other purpose stated in this Act that applies to the civil liability provision; and
    1. the nature and extent of the contravention or involvement in the contravention; and
      1. the nature and extent of any loss or damage suffered by any person, or gains made or losses avoided by the person in contravention or who was involved in the contravention, because of the contravention or involvement in the contravention; and
        1. whether or not a person has paid an amount of compensation, reparation, or restitution, or taken other steps to avoid or mitigate any actual or potential adverse effects of the contravention; and
          1. the circumstances in which the contravention, or involvement in the contravention, took place; and
            1. whether or not the person in contravention, or who was involved in the contravention, has previously been found by the court in proceedings under this Act, or any other enactment, to have engaged in any similar conduct; and
              1. in the case of section 534 (directors treated as having contravened), the circumstances connected with the director's appointment (for example, whether the director is a non-executive or an independent director); and
                1. the relationship of the parties to the transaction constituting the contravention.

                  Compare