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Financial Markets Conduct Act 2013

Fair dealing - Misleading or deceptive conduct, false or misleading representations, and unsubstantiated representations

24: Court must have regard to certain matters

You could also call this:

"The court considers all the facts when someone breaks financial market rules"

Illustration for Financial Markets Conduct Act 2013

When you are in court because someone did not follow the rules in section 23 of the Financial Markets Conduct Act 2013, the court looks at all the circumstances. The court thinks about the type of financial products or services that were involved and what the person said about them. The court also considers what the person did to check their information before making a statement.

The court wants to know what research the person did and where they got their information from. The court checks if the person followed any rules or standards that apply to what they were saying. The court thinks about how the person's statement might affect others.

If the court is looking at this situation, it does not change how other parts of the law, such as sections 499 to 504, are applied. You can find more information about these sections in the relevant part of the law. The court uses all this information to make a decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5155244.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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23: Unsubstantiated representations, or

"Don't make claims about something you're selling if you can't back them up with good reasons."

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25: Limitation on commencement of proceedings in relation to unsubstantiated representations, or

"Only the Financial Markets Authority can take someone to court for making false claims."

Part 2Fair dealing
Misleading or deceptive conduct, false or misleading representations, and unsubstantiated representations

24Court must have regard to certain matters

  1. In a proceeding concerning a contravention of section 23, and in assessing whether a person had reasonable grounds for a representation, a court must have regard to all of the circumstances, including—

  2. the nature of the financial products or financial services in respect of which the representation was made:
    1. the nature of the representation (for example, whether it was a representation about quality or quantity):
      1. any research or other steps taken by or on behalf of the person before the person made the representation:
        1. the nature and source of any information that the person relied on to make the representation:
          1. the extent to which the person making the representation complied with the requirements of any standards, codes, or practices relating to the grounds on which such a representation may be made, and the nature of those requirements:
            1. the actual or potential effects of the representation on any person.

              1. Subsection (1) does not limit sections 499 to 504.