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Financial Markets Conduct Act 2013

Regulations, transitional provisions, and miscellaneous provisions - Recognition and application regimes - Exemption from Act and regulations for New Zealand offers under recognition regime

577: Matters that must be stated in regulations implementing recognition regime

You could also call this:

"What rules must be included when creating laws for overseas financial products in New Zealand?"

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When regulations are made under section 576, they must say what country the recognition regime applies to. They must also say what types of financial products are included in the regime. You need to know what rules do not apply to these products, and what conditions must be met for the regime to apply.

The regulations must state what terms and conditions you must follow, such as making offers according to another country's laws. You may need to warn investors that New Zealand laws do not apply to the offer, and give certain information to the FMA or Registrar.

The regulations can have different rules for different types of financial products or situations, so you should check what applies to you.

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576: Power to exempt from Act and regulations under recognition regime, or

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Part 9Regulations, transitional provisions, and miscellaneous provisions
Recognition and application regimes: Exemption from Act and regulations for New Zealand offers under recognition regime

577Matters that must be stated in regulations implementing recognition regime

  1. The regulations made under section 576 must state—

  2. the country to which the recognition regime applies; and
    1. the classes of financial products to which the recognition regime applies (whether by reference to type of issuer, offeror, offer, or any other matter); and
      1. the exemptions from provisions of this Act and the regulations for those products; and
        1. the preconditions that must be met for the recognition regime to apply, for example (without limitation), requiring specified information relating to the offer or financial products to be provided to the FMA or Registrar; and
          1. the terms and conditions that must be complied with under the recognition regime, for example (without limitation), requiring—
            1. the offer of the financial products to be made in accordance with specified provisions of the designated country's laws:
              1. warnings to be given to investors so as to inform them that the offer of the financial products is regulated under the designated country's laws and that New Zealand laws relating to the offer of financial products do not apply to the offer:
                1. specified information relating to the offer or financial products to be provided to the FMA or Registrar.

                2. Regulations may provide different exemptions, preconditions, and terms and conditions for different classes of financial products, offers, persons, or circumstances.

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