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Fair Trading Act 1986

Miscellaneous provisions

48P: Proceedings relating to financial products or financial services

You could also call this:

"Getting permission to take legal action about money products or services"

Illustration for Fair Trading Act 1986

If you are dealing with financial products or services, the Commission must get consent from the Financial Markets Authority (FMA) before starting court proceedings. The FMA considers many things when deciding whether to give consent, including the purposes of the Financial Markets Conduct Act 2013 and any warnings or guidelines they have issued. The FMA's consent can be for a specific case or for a type of case. When the FMA is thinking about giving consent, they look at things like the Financial Markets Conduct Act 2013 and the Financial Markets Authority Act 2011. They also think about any exemptions they have granted and any other actions they have taken. The FMA can give consent for a particular case or for a type of case, and their consent is important for the Commission's court proceedings. A financial product is something that has to do with money, like a loan or an investment, and it includes things like financial advice products and securities. A financial service is something that helps people with their money, like a bank or an insurance company, and it includes things like market services. The Commission and the FMA work together to make sure that financial products and services are fair and honest.

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

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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48O: Maintenance of privilege, or

"Keeping information private when sharing with other countries for fair trading"

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48Q: No pecuniary penalty and fine for same conduct involving financial products or financial services, or

"No double punishment for same mistake with money products or services"

Part 6Miscellaneous 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).