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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

579: Offence for breach of regulations implementing recognition regime

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"Breaking rules about financial products can lead to a fine of up to $50,000."

Illustration for Financial Markets Conduct Act 2013

If you break a rule about a financial product under a recognition regime, you can get in trouble. You will commit an offence if you do not follow the terms and conditions. If you are found guilty, you can be fined up to $50,000. This applies to you if you are the person offering the financial product, or if you are a director of the company offering the product at the time of the breach. It also applies to you if you have allowed yourself to be named as a director of the company offering the product in an advertisement, even if you are not a director yet.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091851.

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578: FMA may declare failure to meet preconditions of recognition regime to be non-material, or

"The FMA can decide some rule breaks are not a big deal and don't matter."

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580: Extension of Act and regulations to overseas offers under application regime, or

"The law applies to financial products sold overseas if certain rules are met."

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

579Offence for breach of regulations implementing recognition regime

  1. If there is a contravention, in respect of a financial product, of a term or condition that must be complied with under a recognition regime, each of the following persons commits an offence and is liable on conviction to a fine not exceeding $50,000:

  2. the offeror of the financial product; and
    1. every person who is a director of the offeror at the time of the contravention; and
      1. every person who has authorised himself or herself to be named, and is named, in any advertisement relating to the financial product as a director of the offeror or as having agreed to become a director either immediately or after an interval of time.

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