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Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - FMA's enforcement powers - Orders that exclusion does not apply

474: FMA may order that exclusion for offers of products of same class as quoted products does not apply

You could also call this:

"The FMA can stop some rules applying to a company if it hasn't followed the law properly."

Illustration for Financial Markets Conduct Act 2013

The FMA can make an order that says some rules do not apply to a company. This happens if the FMA thinks the company has not followed certain rules in the last 12 months. These rules include things like telling people important information about the company and following certain parts of the law, such as clause 19 of Schedule 1, Part 7, and Part 7A.

The FMA can still use its other powers, even if it makes this kind of order. You can think of the FMA's powers like a set of tools it can use to make sure companies follow the law. The FMA can choose which tools to use in different situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702258.

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473: Terms of unsolicited offer orders, or

"Rules for dealing with unexpected investment offers"

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475: FMA must follow steps before making orders, or

"Before making a big decision, the Financial Markets Authority must follow some important steps and tell people involved."

Part 8Enforcement, liability, and appeals
FMA's enforcement powers: Orders that exclusion does not apply

474FMA may order that exclusion for offers of products of same class as quoted products does not apply

  1. The FMA may make an order that clause 19 of Schedule 1 does not apply in respect of an issuer if the FMA is satisfied that the issuer has failed to comply with any of the following at any time during the previous 12 months before the order is made:

  2. a continuous disclosure obligation:
    1. any provision under Part 7:
      1. any provision under Part 7A:
        1. any prescribed provision.

          1. Subsection (1) does not limit any other power of the FMA by or under this Act.

          Notes
          • Section 474(1)(ba): inserted, on , by section 12 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).