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Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - Orders to protect interests of aggrieved persons in case of financial markets investigations or proceedings

522: When court may make order to protect interests of aggrieved persons

You could also call this:

"Court help for people affected by financial wrongdoing"

Illustration for Financial Markets Conduct Act 2013

If someone is being investigated for doing something wrong with money or financial products, you might be affected. The court can make orders to protect you if you are affected by what this person did. You can ask the court for help, or the Financial Markets Authority can ask for you.

The court can make these orders if someone is being investigated or if they are already being prosecuted for doing something wrong. This can include things like breaking the law or being dishonest when dealing with financial products. The court wants to make sure you are protected if someone has done something wrong that affects you.

Some words have special meanings in this law, like "aggrieved person" which means someone who is affected by what someone else did. "Associate" means someone who is connected to the person who did something wrong. "Civil proceedings" means a court case that is not a criminal case. "Liable" means being responsible for paying money or giving back property. "Relevant person" means the person who is being investigated or prosecuted.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091757.

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"Rules for telling people about banning orders and how to appeal them"

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523: What orders may be made, or

"What happens if you break the law: the orders a court can make"

Part 8Enforcement, liability, and appeals
Orders to protect interests of aggrieved persons in case of financial markets investigations or proceedings

522When court may make order to protect interests of aggrieved persons

  1. This section applies if—

  2. an investigation is being carried out under the Financial Markets Authority Act 2011 in relation to an act or omission by a person that—
    1. constitutes or may constitute a contravention, or involvement in a contravention, of any Act specified in Part 1 of Schedule 1 of the Financial Markets Authority Act 2011; or
      1. constitutes or may constitute a contravention, or involvement in a contravention, of any Act specified in Part 2 of Schedule 1 of the Financial Markets Authority Act 2011 (where the person is, or has been, a financial markets participant); or
        1. may result in a prosecution or civil proceedings of the kind referred to in any of paragraphs (b) to (d) being begun against the person; or
        2. a prosecution has begun against a person for an offence under—
          1. any Act specified in Part 1 of Schedule 1 of the Financial Markets Authority Act 2011; or
            1. any Act specified in Part 2 of Schedule 1 of the Financial Markets Authority Act 2011 (where the person is, or has been, a financial markets participant); or
            2. civil proceedings have begun against a person under, or in respect of,—
              1. any Act specified in Part 1 of Schedule 1 of the Financial Markets Authority Act 2011; or
                1. any Act specified in Part 2 of Schedule 1 of the Financial Markets Authority Act 2011 (where the person is, or has been, a financial markets participant); or
                2. civil proceedings have begun against a person that, in connection with the offer, issue, transfer, supply, or use of financial products or financial services, seek damages or other relief for a contravention, involvement in a contravention, fraud, negligence, breach of duty, or other misconduct.

                  1. The court may, on application by the FMA or by an aggrieved person, make 1 or more of the orders listed in section 523 if the court considers it necessary or desirable to do so for the purpose of protecting the interests of an aggrieved person.

                  2. In this section, a reference to any Act referred to in Schedule 1 of the Financial Markets Authority Act 2011 includes a reference to any regulations made under any of those Acts.

                  3. In this section and section 523,—

                    aggrieved person means any person to whom a relevant person is liable

                      associate means an associated person of the relevant person

                        civil proceedings means proceedings in a court (other than criminal proceedings)

                          liable means liable, or may be or become liable, to pay money (whether in respect of a debt, by way of damages or compensation, or otherwise) or to account for financial products or other property

                            relevant person means a person referred to in subsection (1).

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