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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of financial advice and financial advice services - Miscellaneous provisions

431S: Protection of individual who reports breach

You could also call this:

"Reporting a financial rule breaker keeps you safe"

Illustration for Financial Markets Conduct Act 2013

If you give financial advice and you think someone has broken a rule in the Financial Markets Conduct Act, you can report it to the FMA. You must reasonably believe the rule was broken and you must report it to the FMA. If you make the report honestly, you are protected from some things happening to you. You cannot be sued, charged with a crime, or disciplined because you made the report.

If you report someone honestly, your job cannot be ended just because you made the report. Also, a group that oversees your professional conduct cannot take action against you because you made the report. This protection is part of the Financial Markets Conduct Act, which was amended by the Financial Services Legislation Amendment Act 2019.

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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=LMS465830.

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Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Miscellaneous provisions

431SProtection of individual who reports breach

  1. This section applies if an individual who gives regulated financial advice (A)—

  2. reasonably believes that a person has contravened a provision of this Act that relates to the giving of financial advice or the provision of a financial advice service; and
    1. reports that belief to the FMA.

      1. If A makes the report in good faith,—

      2. no civil, criminal, or disciplinary proceedings may be brought against A as a result of A having made the report; and
        1. no person may terminate A’s employment or appointment as a result of A having made the report; and
          1. no tribunal, body, or authority that has jurisdiction in respect of A’s professional conduct may make an order against, or do any act in relation to, A as a result of A having made the report.

            Notes
            • Section 431S: inserted, on , by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).