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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

523: What orders may be made

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you break the law under the Financial Markets Conduct Act 2013, a court can make certain orders. You might be stopped from moving your money or property around. A court can also stop other people from paying you or giving you your property.

A court can make you pay or transfer money or property to someone who will hold it until your case is decided, as mentioned in section 522(1). You might have a receiver or trustee appointed to manage your property. If you are in charge of a managed investment scheme, you might be removed from that role.

A court can also appoint someone new to be in charge of a managed investment scheme, as mentioned in section 522(1). If you are an individual, you might be required to give your passport to the court. You might also be stopped from leaving New Zealand without the court's permission.

These orders can be in place for a certain amount of time or until the court says they are no longer needed. The court can make orders about property that you do not own completely, like property you hold in trust for someone else. This includes property you hold as a trustee, nominee, or in a fiduciary capacity.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091768.

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

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524: Interim orders, or

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

523What orders may be made

  1. The orders that may be made under this subpart are—

  2. an order prohibiting the relevant person from transferring, charging, or otherwise dealing with money, financial products, or other property held or controlled by the relevant person:
    1. an order prohibiting a person who is indebted to the relevant person, or to an associate, from making a payment in total or partial discharge of the debt to, or to another person at the direction or request of, the relevant person or associate:
      1. an order prohibiting a person who holds money on behalf of the relevant person, or on behalf of an associate, from paying all or any of the money to the person, or to another person at the direction or request of that person, on whose behalf the money is held:
        1. an order prohibiting a person who holds financial products or other property on behalf of the relevant person, or on behalf of an associate, from transferring or otherwise parting with possession of the financial products or property to the person, or to another person at the direction or request of that person, on whose behalf the financial products or other property is held:
          1. an order prohibiting the taking or sending out of New Zealand by a person of money of the relevant person or of an associate:
            1. an order prohibiting the taking, sending, or transfer by a person of financial products or other property of the relevant person or of an associate from a place in New Zealand to a place outside New Zealand (including the transfer of financial products from a register in New Zealand to a register outside New Zealand):
              1. an order requiring the relevant person, an associate, or any person holding money, financial products, or other property on behalf of the relevant person or an associate, to pay or transfer money, financial products, or other property to a specified person to be held on trust pending determination of the investigation, prosecution, or civil proceedings referred to in section 522(1):
                1. an order appointing,—
                  1. if the relevant person is an individual, a receiver or trustee, having any powers that the court orders, of the property or of part of the property of that person; or
                    1. if the relevant person is a body corporate, a receiver or receiver and manager, having any powers that the court orders, of the property or of part of the property of that person:
                    2. an order removing a person from being a manager of a managed investment scheme to which the investigation, prosecution, or civil proceedings referred to in section 522(1) relates or relate:
                      1. an order appointing a person as the manager of a managed investment scheme to which the investigation, prosecution, or civil proceedings referred to in section 522(1) relates or relate (with any powers, rights, and obligations that the court orders):
                        1. if the relevant person is an individual, an order requiring that person to deliver up to the court his or her passport and any other documents that the court thinks fit:
                          1. if the relevant person is an individual, an order prohibiting that person from leaving New Zealand without the consent of the court.

                            1. A reference in subsection (1)(f) or (h) to property of a person includes a reference to property that the person holds otherwise than as sole beneficial owner, for example,—

                            2. as trustee for, as nominee for, or otherwise on behalf of or on account of, another person; or
                              1. in a fiduciary capacity.

                                1. An order may be expressed to operate for a specified period or until the order is discharged by a further order under this section.

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