New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) Where, at any time, the Commission is of the opinion that an advertisement—
(a) Is likely to deceive, mislead, or confuse with regard to any particular that is material to the offer of securities to which it relates; or
(b) Is inconsistent with any registered prospectus referred to in it; or
(c) Does not comply with this Act and regulations,—
the Commission may make an order prohibiting the distribution of that advertisement or any advertisement which relates to the offer of securities.
(2) Without limiting subsection (1) of this section, where, at any time, the Commission is of the opinion that an advertisement that contains or refers to an offer of debt securities the issuer of which is a registered bank is inconsistent with the most recent disclosure statement published by the registered bank under section 81 of the Reserve Bank of New Zealand Act 1989, the Commission may make an order prohibiting the distribution of that advertisement or any advertisement which relates to the offer of securities.
(3) An order may be made on such terms and conditions as the Commission thinks fit.
(4) Where the Commission makes an order under this section,—
(a) It shall forthwith notify the issuer of the securities that the order has been made and the reasons for making it; and
(b) It may notify any other person that the order has been made and the reasons for making it.
(5) Every person who contravenes an order made under this section commits an offence and is liable on summary conviction to a fine not exceeding $5,000.
(6) It is a defence to a charge under subsection (5) of this section if the defendant proves that the advertisement was distributed—
(a) Without the defendant's knowledge; or
(b) Without the defendant's knowledge of the order.
(7) At any time after an order has been made under this section, the issuer of the securities to which the advertisement relates shall be entitled to be heard and represented before the Commission.
(8) The Commission, if it is satisfied that the order should not continue in force, may revoke the order.
(9) In this section, the term advertisement does not include an investment statement.
Sections 38B to 38F were inserted, as from 1 October 1997, by section 17 Securities Amendment Act 1996 (1996 No 100). See section 2 of that Act for transitional provisions relating to its application.
Subsection (7) was amended, as from 1 December 2002, by section 15 Securities Amendment Act 2002 (2002 No 43), by substituting the words “be heard and”
for the words “appear and be”
.