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Financial Markets Conduct Act 2013

Regulations, transitional provisions, and miscellaneous provisions - Exemptions

557: Restriction on FMA's exemption power

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The FMA is a group that helps make sure financial markets in New Zealand are fair. You might wonder when the FMA can say it's okay to ignore some rules. The FMA can only do this if they think it will help achieve the main goals of the Financial Markets Conduct Act, which are outlined in section 3 and section 4. They also have to make sure the exemption is not too broad and only covers what is necessary.

The FMA has to be careful when deciding to exempt someone from the rules. They have to think about whether it's necessary or desirable to make an exemption. You can find out more about the main purposes of the Act in section 3 and the additional purposes in section 4.

In some cases, the FMA also has to consider the purpose and principles of the Trusts Act 2019, like when they are looking at a specific situation mentioned in section 556(3A).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091822.

Topics:
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Part 9Regulations, transitional provisions, and miscellaneous provisions
Exemptions

557Restriction on FMA's exemption power

  1. The FMA must not grant an exemption under this subpart unless it is satisfied that—

  2. granting the exemption is necessary or desirable in order to promote either or both of the main purposes of this Act as specified in section 3 or any of the additional purposes specified in section 4; and
    1. the extent of the exemption is not broader than is reasonably necessary to address the matters that gave rise to the exemption.

      1. In the case of section 556(3A), the FMA must also have regard to the purpose and principles of the Trusts Act 2019.

      Notes
      • Section 557(2): inserted, on , by section 174 of the Trusts Act 2019 (2019 No 38).