Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Regulations, transitional provisions, and miscellaneous provisions - Recognition and application regimes - Exemption from Act and regulations for New Zealand offers under recognition regime

578: FMA may declare failure to meet preconditions of recognition regime to be non-material

You could also call this:

"The FMA can decide some rule breaks are not a big deal and don't matter."

Illustration for Financial Markets Conduct Act 2013

The FMA can decide that you not meeting some rules is not a big deal. This happens when the FMA thinks you failed to meet a rule in a minor way, like a small mistake. The FMA can write a declaration saying the failure is non-material, which means it does not matter.

If the FMA makes this declaration, you are treated as if you met the rule at the right time. This is according to the regulations made under section 576. You must follow these regulations.

The FMA's decision is important because it affects how you follow the rules. You should know that the FMA's declaration is based on their judgement of the situation. The FMA can look at the rules in section 577(1)(d) to make their decision.

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 It might be out of date or be missing some parts.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=DLM5566408.

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

577: Matters that must be stated in regulations implementing recognition regime, or

"What rules must be included when creating laws for overseas financial products in New Zealand?"

Next

579: Offence for breach of regulations implementing recognition regime, or

"Breaking rules about financial products can lead to a fine of up to $50,000."

Part 9Regulations, transitional provisions, and miscellaneous provisions
Recognition and application regimes: Exemption from Act and regulations for New Zealand offers under recognition regime

578FMA may declare failure to meet preconditions of recognition regime to be non-material

  1. If the FMA is satisfied, in relation to an offer, that a failure to meet a precondition referred to in section 577(1)(d) is minor or technical only, the FMA may declare in writing that the failure is non-material.

  2. If the FMA makes a declaration, the precondition must be treated as having been met at the time it was required to be met by the regulations made under section 576.

Compare