Financial Markets Conduct Act 2013

Regulations, transitional provisions, and miscellaneous provisions - Exemptions

556: FMA may grant exemptions

You could also call this:

"The Financial Markets Authority can let people or organisations off from following some finance rules."

Illustration for Financial Markets Conduct Act 2013

The FMA can let you off from following some rules in the Financial Markets Conduct Act. They can choose who to exempt and what rules to exempt them from. This includes rules in Parts 2 to 7A, subpart 8 of Part 8, and any of the schedules, as well as any regulations.

The FMA can also exempt you from rules that are not directly stated, but are implied in a contract or agreement. Some other parts of the Act, like subpart 6 or 7, do not limit the FMA's power to grant exemptions.

The FMA can exempt trusts or people involved with trusts from some rules in the Trusts Act 2019. This can happen if the trust is set up under a special deed that would normally need to be lodged, but the FMA has granted an exemption from that requirement. It can also happen if a managed investment scheme is set up as a trust and would normally need to be registered, but the FMA has granted an exemption from that requirement. When the FMA grants an exemption, some general rules apply, as outlined in subpart 5.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091821.

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555: Different matters may be prescribed in respect of different circumstances, or

"Rules can be different for different financial situations"

557: Restriction on FMA's exemption power, or

"Rules that limit when the FMA can let people ignore financial market rules"

Part 9Regulations, transitional provisions, and miscellaneous provisions
Exemptions

556FMA may grant exemptions

The FMA may, on the terms and conditions (if any) that it thinks fit, exempt any person or class of persons or any transaction or class of transactions from compliance with any provision or provisions of—
Parts 2 to 7A, subpart 8 of Part 8, and any of the schedules; or
any regulations.

To avoid doubt, an exemption may extend to exempt from compliance with any provision that is implied into a deed or an agreement by or under any other provision referred to in subsection (1).
Nothing in subpart 6 or 7 limits subsection (1).
The FMA may, on the terms and conditions (if any) that it thinks fit, exempt any trust or class of trusts (or any person or class of persons in respect of a trust or class of trusts) from any provision or provisions of the Trusts Act 2019 if—
the trust or that class of trusts is constituted (or is to be constituted) under a trust deed or trust deeds that would be required to be lodged under section 103 except for the fact that the FMA has granted or will grant an exemption from that requirement under subsection (1); or
both of the following apply:
1. a managed investment scheme is constituted (or is to be constituted) as 1 or more trusts or as including 1 or more trusts (or both):
2. the scheme would be required to be registered under subpart 2 of Part 4 except for the fact that the FMA has granted or will grant an exemption from that requirement under subsection (1).

Subpart 5 (general provisions relating to certain FMA instruments) applies to an exemption granted under this section.

Notes

Section 556(1)(a): amended, on 27 October 2022, by section 19 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).
Section 556(1)(a): amended, on 9 August 2017, by section 94 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
Section 556(3A): inserted, on 30 January 2021, by section 173 of the Trusts Act 2019 (2019 No 38).