Securities Act 1978

  • repealed
  • Securities Act 1978: repealed, on 1 December 2014, by section 4(1)(a) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
38B Prohibition of advertisements
  • (1) Where, at any time, the FMA 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 FMA 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), where, at any time, the FMA 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 FMA 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 FMA thinks fit.

    (4) Where the FMA 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 conviction to a fine not exceeding $5,000.

    (6) It is a defence to a charge under subsection (5) 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) The FMA must, after an order has been made under this section, give the issuer or the issuer's representative an opportunity to make written submissions and to be heard on the matter.

    (8) The FMA, 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.

    Section 38B: inserted, on 1 October 1997, by section 17 of the Securities Amendment Act 1996 (1996 No 100).

    Section 38B(1): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

    Section 38B(2): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

    Section 38B(3): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

    Section 38B(4): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

    Section 38B(5): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 38B(7): replaced, on 1 May 2011, by section 18 of the Securities Amendment Act 2011 (2011 No 6).

    Section 38B(8): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).