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Financial Markets Conduct Act 2013

Financial reporting - Civil liability for certain contraventions of this Part

461M: Part 7 financial reporting provisions

You could also call this:

"Rules for keeping and sharing financial information"

Illustration for Financial Markets Conduct Act 2013

If you break certain financial reporting rules, you might have to pay a penalty. You can find out more about this in subpart 3 of Part 8. The penalty can be up to $1 million for an individual or $5 million for others.

Some of these rules say you must keep proper accounting records, prepare financial statements, and have them audited. You must also lodge your financial statements. These rules are in section 455, sections 460, 461, 461A, and 461B, section 461D, and section 461H.

If you break other rules, like where and for how long you keep accounting records, you might have to pay a penalty too. You can find out more about this in subpart 3 of Part 8. The penalty can be up to $200,000 for an individual or $600,000 for others, and these rules are in section 456 and section 458.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6027088.

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Part 7Financial reporting
Civil liability for certain contraventions of this Part

461MPart 7 financial reporting provisions

  1. All of the provisions specified in subsections (3) and (4) are Part 7 financial reporting provisions.

  2. A contravention of any of the provisions listed in subsection (3) may give rise to civil liability (see subpart 3 of Part 8), including a pecuniary penalty not exceeding the greatest of the consideration for the relevant transaction, 3 times the amount of the gain made or the loss avoided, and $1 million in the case of an individual or $5 million in any other case.

  3. The provisions are the following:

  4. section 455 (FMC reporting entities must keep proper accounting records):
    1. sections 460, 461, 461A, and 461B (financial statements and group financial statements must be prepared):
      1. section 461D (financial statements must be audited):
        1. section 461H (financial statements must be lodged).

          1. A contravention of section 456 or 458 (place where, and period for which, accounting records to be kept) may give rise to civil liability (see subpart 3 of Part 8), including a pecuniary penalty not exceeding $200,000 in the case of an individual or $600,000 in any other case.

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