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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of licences relating to financial benchmarks

448C: FMA’s powers to direct contributor to provide information or data

You could also call this:

"The FMA can ask you to share information to help keep financial benchmarks fair and working well."

Illustration for Financial Markets Conduct Act 2013

The FMA can tell you to give information or data if you used to provide it for a financial benchmark. They can do this if they think you might stop providing the information and it's necessary for the benchmark to work. The FMA wants to make sure the benchmark is fair and works well, as stated in section 448B.

The FMA can send you a written notice telling you to give the information or data to a certain person or group. You have to follow their direction, which might say how and when to give the information. The FMA can also say who you need to give the information to.

If the FMA tells you to give information or data, you must do it. This is because you are a contributor, which means you have given information or data for a financial benchmark before. It does not matter where you live or work, you still have to follow the FMA's direction. If you do not follow the direction, you might be liable, as explained in subpart 3 of Part 8.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS462797.

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448B: Additional purposes for licences relating to financial benchmarks, or

"Extra rules for people who manage important financial numbers to keep them accurate and reliable"

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448D: FMA’s powers to direct administration of financial benchmark, or

"The FMA can direct a company on how to manage a financial benchmark if it's not being run properly."

Part 6Licensing and other regulation of market services
Additional regulation of licences relating to financial benchmarks

448CFMA’s powers to direct contributor to provide information or data

  1. The FMA may exercise a power under subsection (2) if it is satisfied that—

  2. a contributor has ceased or is likely to cease providing or making available information or data relevant to the generation or operation of the financial benchmark specified in a licence; and
    1. it is necessary or desirable in order to promote any of the purposes set out in section 448B.

      1. The FMA may, by written notice and otherwise in the prescribed manner, give a direction to a contributor requiring the contributor to provide information or data to a licensee, an authorised body, or another entity, where the provision of that information or data is necessary or desirable for the generation or operation of the financial benchmark specified in a licence.

      2. A direction may (without limitation) specify either or both of the following:

      3. requirements relating to the manner and form in which the information or data must be provided:
        1. the entity to which the information or data must be provided.

          1. In this subpart, contributor means a person whose activities have previously resulted in information or data being provided or made available to a licensee or an authorised body for the generation or operation of the financial benchmark specified in a licence (regardless of whether the information or data is provided or made available directly or indirectly to the licensee or authorised body).

          2. Subsection (4) applies regardless of where a contributor is resident, is incorporated, or carries on business.

          3. The contributor must comply with the direction (see subpart 3 of Part 8, which provides for civil liability for a contravention of this section).

          Notes
          • Section 448C: inserted, on , by section 43 of the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 (2019 No 46).