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Fair Trading Act 1986

Miscellaneous provisions

48P: Proceedings relating to financial products or financial services

You could also call this:

“Rules for taking legal action about money-related products and services”

This section talks about what happens when the Commission wants to start legal action about financial products or services. If the Commission thinks someone might have broken the rules about fair trading for financial products or services, they need to get permission from the Financial Markets Authority (FMA) before they can take them to court.

The FMA has to think about a few things when deciding whether to give permission. These include the goals of the Financial Markets Conduct Act, any warnings or guidelines they’ve given, any promises made by the company, any special permissions given, and anything else the FMA has done or plans to do about the situation.

The FMA can give permission for specific actions or for a whole group of similar actions. Even if the Commission forgets to get permission, it doesn’t stop them from going to court.

The section also explains what ‘financial product’ and ‘financial service’ mean. A financial product is things like investments or securities. A financial service is things like giving financial advice or managing investments. The exact definitions can change depending on what the government decides.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6033255.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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Part 6 Miscellaneous provisions

48PProceedings relating to financial products or financial services

  1. This section applies if—

  2. the Commission is considering commencing civil or criminal proceedings in relation to conduct that constitutes, or may constitute, a contravention of any of sections 9 to 13; and
    1. the Commission considers that that conduct is in relation to a financial product or a financial service.

      1. The Commission must, before commencing those proceedings, obtain the consent of the Financial Markets Authority (the FMA).

      2. However, a failure to obtain consent under subsection (2) does not affect any proceedings commenced by the Commission.

      3. The FMA, when considering whether to give its consent, must have regard to the following matters to the extent that the FMA considers that those matters are relevant:

      4. the purposes of the Financial Markets Conduct Act 2013 specified in sections 3 and 4 of that Act:
        1. any warning, report, or guideline issued, or comment or statement made, under section 9(1)(a)(ii) or (v) of the Financial Markets Authority Act 2011:
          1. any undertaking accepted under section 46 of the Financial Markets Authority Act 2011:
            1. any exemption granted under the Financial Markets Conduct Act 2013:
              1. any other action that the FMA has taken, or intends to take, in relation to the conduct:
                1. any other matters that the FMA considers relevant.

                  1. The FMA's consent may relate to particular conduct or a class of conduct (whether or not the conduct has already occurred).

                  2. In this section,—

                    financial product—

                    1. has the same meaning as in section 7 of the Financial Markets Conduct Act 2013; and
                      1. includes, in relation to any provision of sections 9 to 13,—
                        1. any class or classes of financial advice product declared by regulations made under section 548(1)(a) of that Act to be a financial product for the purposes of the provision of Part 2 of that Act that corresponds to that provision of this Act; and
                          1. any security of a kind referred to in section 6(6)(c) of that Act (being a security that is used to generate a financial benchmark)

                          financial service—

                          1. has the same meaning as in section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008; and
                            1. includes a market service within the meaning of section 6(1) of the Financial Markets Conduct Act 2013; but
                              1. does not include, in relation to any provision of sections 9 to 13, any class or classes of services declared by regulations made under section 548(1)(d)(ii) of the Financial Markets Conduct Act 2013 not to be financial services for the purposes of the provision of Part 2 of that Act that corresponds to that provision of this Act.

                              Notes
                              • Section 48P: inserted, on , by section 8 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                              • Section 48P(6) financial service: replaced, on , by section 41 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                              • Section 48P(6) financial service paragraph (b): replaced, on , by section 52 of the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 (2019 No 46).