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Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - FMA's enforcement powers - Order to prohibit offer under recognition regime

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The FMA can stop you from making an offer under a recognition regime. This can happen if the FMA thinks you or someone associated with you broke the rules in the past. The FMA must think the rule break was serious, not just a small mistake.

The FMA's order will say how long you cannot make an offer, which can be up to 5 years. You can find the rules for the recognition regime in regulations made under section 576. The FMA has other powers too, and this rule does not limit them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5566406.

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Part 8Enforcement, liability, and appeals
FMA's enforcement powers: Order to prohibit offer under recognition regime

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

  1. The FMA may make an order prohibiting a person (A) from making an offer under a recognition regime set out in regulations made under section 576 if the FMA is satisfied that—

  2. 1 or more of the requirements of those regulations have been contravened in relation to a previous offer by A or an associated person of A; and
    1. the contravention was not minor or technical only.

      1. The order must specify the period during which the prohibition applies (which must be no longer than 5 years from the day on which the order is made).

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