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Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - Civil liability - Compensatory orders

494: When court may make compensatory orders

You could also call this:

"When a court can help someone who has been harmed by ordering compensation."

Illustration for Financial Markets Conduct Act 2013

The court can make a compensatory order if you apply for one and the court is satisfied that someone has broken a civil liability rule. The court must also be satisfied that someone, called the aggrieved person, has suffered or will suffer loss or damage because of the broken rule. You can apply for a compensatory order if you are the FMA or any other person.

The court can decide to make a compensatory order even if the aggrieved person is not part of the court case. This means the court can still help the aggrieved person even if they are not directly involved in the proceedings. You can find similar information in the s 42ZA section of another act.

The court's decision to make a compensatory order depends on the circumstances of the case, and you can find more information about this in the relevant laws and regulations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091716.

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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"

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495: Terms of compensatory orders, or

"Helping someone who was treated unfairly: getting back what they lost"

Part 8Enforcement, liability, and appeals
Civil liability: Compensatory orders

494When court may make compensatory orders

  1. The court may make a compensatory order, on application by the FMA or any other person, if the court is satisfied that—

  2. there is a contravention of a civil liability provision; and
    1. a person (the aggrieved person) has suffered, or is likely to suffer, loss or damage because of the contravention.

      1. The court may make a compensatory order whether or not the aggrieved person is a party to the proceedings.

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