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Financial Markets Conduct Act 2013

Regulations, transitional provisions, and miscellaneous provisions - FMA's designation power

565: FMA may make interim orders pending exercise of powers

You could also call this:

"The FMA can make a temporary stop to protect people while they decide what to do next."

Illustration for Financial Markets Conduct Act 2013

The FMA can make a temporary order to stop people from buying or selling certain securities or using certain services. You might wonder why they do this - it's because they are thinking about using their powers to deal with those securities or services, and they think it's a good idea for everyone. The FMA also thinks it's desirable to make this order to protect the public interest.

When the FMA makes this temporary order, it must say who it applies to, like the person or company selling the securities or services. The order can also require certain people connected to the seller to follow the order, even if they are not named in the order.

The FMA can make this order without asking the seller for their opinion first, but they must give the seller a chance to respond and be heard after the order is made, as stated in section 566(1)(b). The FMA must tell the seller and the Registrar, if necessary, that the order has been made and why.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091830.

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Part 9Regulations, transitional provisions, and miscellaneous provisions
FMA's designation power

565FMA may make interim orders pending exercise of powers

  1. The FMA may make an interim order that no offers, issues, sales, or other acquisitions or disposals of securities specified in the order may be made, or services specified in the order may be supplied, while the interim order is in force if—

  2. the FMA is considering, at any time, whether it may exercise a power under this subpart in respect of those securities or services; and
    1. the FMA considers that making an interim order is desirable in the public interest.

      1. An order under subsection (1)—

      2. must specify the offeror or offerors or service provider or providers to which the order applies; and
        1. may require—
          1. all, or any specified class or classes, of the associated persons of the offeror or offerors or service provider or providers to comply with the order (including associated persons that may be incorporated or formed after the date of the order); and
            1. an offeror or service provider to provide a copy of the order to all or any of those associated persons.

            2. For the purpose of subsection (2), the order is not required to refer to the associated persons by name.

            3. The FMA—

            4. may act under subsection (1) or section 566(1)(b) without giving the offeror or service provider to which the order relates an opportunity to make submissions to, or be heard before, the FMA in respect of the matter; but
              1. must, after acting under subsection (1) or section 566(1)(b), give that offeror or service provider or that person's representative an opportunity to make written submissions and to be heard on the matter.

                1. The FMA must, immediately after making the order, notify each of the following that the order has been made and the reasons for the order:

                2. each offeror or service provider to which the order relates:
                  1. the Registrar, if the order relates to a regulated offer.