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Financial Markets Conduct Act 2013

Climate-related disclosures for certain FMC reporting entities with higher level of public accountability - Preparation of climate statements - Offences

461ZG: Offence to knowingly fail to comply with climate standards

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are a climate reporting entity or a director of one, you commit an offence if you knowingly fail to comply with climate standards. This means you must follow the rules when preparing climate statements, as outlined in sections like section 461Z, section 461ZA, section 461ZB, and section 461ZC. You must make sure your climate statements comply with these standards when you lodge them.

If you break this rule, you can get in trouble with the law. As an individual, you could face up to 5 years in prison, a fine of up to $500,000, or both. If you are not an individual, you could face a fine of up to $2.5 million.

You need to understand what the law says about climate standards to avoid getting in trouble.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS775357.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair tradingEnvironment and resources > Climate and energy
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461ZF: Failure to comply with authoritative notice does not give rise to pecuniary penalty, or

"Breaking a rule in a climate statement doesn't mean you'll get a fine."

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461ZH: Assurance engagement required for parts of climate statements relating to greenhouse gas emissions, or

"Get your climate statements about greenhouse gas emissions checked by an independent person."

Part 7AClimate-related disclosures for certain FMC reporting entities with higher level of public accountability
Preparation of climate statements: Offences

461ZGOffence to knowingly fail to comply with climate standards

  1. A climate reporting entity and every director of the entity commit an offence if—

  2. any of the following fail to comply with an applicable climate standard:
    1. the climate statements of the entity prepared under section 461Z:
      1. group climate statements in relation to a group comprising the entity and its subsidiaries prepared under section 461ZA:
        1. the climate statements or group climate statements prepared by the entity under section 461ZB:
          1. in the case of a manager of a registered scheme, the climate statements for any separate fund or for the scheme prepared under section 461ZC; and
          2. the entity or the director (as the case may be) knows that the climate statements or group climate statements 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.

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                Notes
                • Section 461ZG: inserted, on , by section 8 of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).