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Financial Markets Conduct Act 2013

Fair dealing - Civil liability

38: Civil liability for certain contraventions of this Part

You could also call this:

"Breaking certain finance rules might mean you have to pay money to someone else"

Illustration for Financial Markets Conduct Act 2013

If you break certain rules in the Financial Markets Conduct Act 2013, you might have to pay money to someone else. These rules are called Part 2 fair dealing provisions and they are in sections 19 to 23, section 34, and section 36. You can find out more about what happens if you break these rules in subpart 3 of Part 8.

If you break the rules in sections 19 to 23, you might have to pay a penalty. The penalty can be up to the amount of money involved in the transaction, or three times the amount of money you gained or lost, or $1 million if you are an individual or $5 million if you are not. This is all part of the civil liability rules.

If you break the rules in section 34 or section 36, you might also have to pay a penalty. The penalty can be up to $200,000 if you are an individual or $600,000 if you are not. You can find out more about these penalties in subpart 3 of Part 8.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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Part 2Fair dealing
Civil liability

38Civil liability for certain contraventions of this Part

  1. Sections 19 to 23, 34, and 36 are Part 2 fair dealing provisions.

  2. A contravention of any of sections 19 to 23 may give rise to civil liability (see subpart 3 of Part 8), including a pecuniary penalty not exceeding the greatest of the consideration for the relevant transaction, 3 times the amount of the gain made or the loss avoided, and $1 million in the case of an individual or $5 million in any other case.

  3. A contravention of section 34 or 36 may give rise to civil liability (see subpart 3 of Part 8), including a pecuniary penalty not exceeding $200,000 in the case of an individual or $600,000 in any other case.