Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - FMA's enforcement powers - Order to prohibit use of simplified disclosure PDS

470: FMA may order that simplified disclosure PDS may not be used

You could also call this:

"The FMA can stop people using a simplified disclosure document if they break the rules."

Illustration for Financial Markets Conduct Act 2013

The FMA can make an order to stop someone from using a simplified disclosure PDS if they have not followed the rules. You might wonder what rules they have to follow - they include things like continuous disclosure obligations, and provisions under Part 7 and Part 7A of the Act. If the FMA is satisfied that someone has not followed these rules in the last 12 months, they can make this order.

The FMA's order can stop someone from distributing a simplified disclosure PDS or making an offer under it. You need to know what a simplified disclosure PDS is - it is a type of PDS that is declared by regulations as being a simplified disclosure PDS.

The FMA has other powers under the Act, and this section does not limit those powers.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5155275.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

469: Terms of direction orders, or

"What to do when you're given a direction order to follow the law"

Next

471: FMA may order that offer may not be made under recognition regime, or

"The FMA can ban you from making certain offers if you broke the rules badly."

Part 8Enforcement, liability, and appeals
FMA's enforcement powers: Order to prohibit use of simplified disclosure PDS

470FMA may order that simplified disclosure PDS may not be used

  1. The FMA may make an order prohibiting an offeror from distributing a simplified disclosure PDS, or otherwise making an offer under a simplified disclosure PDS, if the FMA is satisfied that the offeror (or the issuer of the relevant financial products) 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. In this section, simplified disclosure PDS means a PDS of a class that is declared by the regulations as being a class of simplified disclosure PDSs.

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

          Notes
          • Section 470(1)(ba): inserted, on , by section 11 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).