Public Finance Act 1989

45V Power of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc

(1)

The FMA may, by notice in the Gazette, designate a person as no longer exempt under section 45U if it is satisfied that—

(a)

the person has not complied with the condition in section 45U(2); or

(b)

the exemption is being used for the purpose or purposes of circumventing, evading, or defeating the operation of the 10% limit taking into account the nature, substance, and economic effect of the interest or relationship or other facts (and not the mere form).

(2)

The FMA may, by notice in the Gazette, revoke a designation under this section.

(3)

A notice under this section takes effect from the date stated in the notice (which must not be earlier than the date of the Gazette notice).

(4)

Before designating a person as no longer exempt, the FMA must—

(a)

do everything reasonably possible on its part to advise the person of the proposed designation; and

(b)

give the person a reasonable opportunity to make submissions to the FMA on the proposal.

(5)

Subsection (4) does not apply to a designation if the FMA considers that it is desirable in the public interest for the exemption to be removed urgently.

(6)

Failure to comply with subsection (4) does not invalidate the designation.

Compare: 1988 No 234 ss 48C, 48D

Section 45V: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).