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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

431U: Limitation on pecuniary penalty orders against financial advice providers

You could also call this:

"Rules to protect financial advice providers from big fines if they've done the right thing"

Illustration for Financial Markets Conduct Act 2013

If you are a financial advice provider, this law applies to you in certain situations. You must have taken all reasonable steps to ensure your financial adviser did not break the rules, as described in section 431H(1) and section 431H(4)(d)(i). If your financial adviser breaks the rules and you have taken these steps, you cannot be fined under section 489 for the breach.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS465834.

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

431ULimitation on pecuniary penalty orders against financial advice providers

  1. This section applies if—

  2. a financial adviser contravenes a duty provision (as defined in section 431H(1)); and
    1. the financial advice provider on whose behalf the financial adviser was acting is civilly liable for the contravention of a duty provision (as described in section 431H(4)(d)(i)); and
      1. the financial advice provider took all reasonable steps to ensure that the financial adviser did not contravene the duty provision.

        1. A pecuniary penalty order may not be made under section 489 against the financial advice provider in relation to the contravention of the duty provision.

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