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Financial Markets Conduct Act 2013

Financial reporting - Preparation, audit, and lodgement of financial statements - Offences

461I: Offence to knowingly fail to comply with financial reporting standards

You could also call this:

"Breaking the law by not following financial reporting rules can get you in big trouble"

Illustration for Financial Markets Conduct Act 2013

If you are part of a company that has to report its finances, you must follow the rules. You have to make sure your financial reports are correct and follow the standards. This includes reports about the company's finances and reports about the finances of a group of companies. If you knowingly do not follow these standards when you submit your reports, you can commit an offence. You can be in trouble if you are the company or one of its directors and you know the reports are not following the rules. If you commit this offence, you can get in trouble, like going to prison or getting a big fine, depending on who you are and what you did.

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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=DLM6027083.

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Part 7Financial reporting
Preparation, audit, and lodgement of financial statements: Offences

461IOffence to knowingly fail to comply with financial reporting standards

  1. An FMC reporting entity and every director of the entity commit an offence if—

  2. any of the following fail to comply with an applicable financial reporting standard:
    1. the financial statements of the entity prepared under section 460:
      1. group financial statements in relation to a group comprising the entity and its subsidiaries prepared under section 461:
        1. in the case of a manager of a registered scheme, financial statements for the scheme or a fund referred to in section 461A:
          1. the financial statements prepared by the entity under section 461B; and
          2. the entity or the director (as the case may be) knows that the financial statements or group financial statements (as the case may be) fail to so comply when those statements are lodged.

            1. A person who commits an offence under subsection (1) is liable on conviction,—

            2. in the case of an individual, to imprisonment for a term not exceeding 5 years, a fine not exceeding $500,000, or both; and
              1. in any other case, to a fine not exceeding $2.5 million.

                Notes
                • Section 461I: inserted, on , by section 48 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).