Need for financial product market licence

309 What is a financial product market

(1)

For the purposes of this Act, a financial product market is a facility by means of which—

(a)

offers to acquire or dispose of financial products are made or accepted; or

(b)

offers or invitations are made to acquire or dispose of financial products that are intended to result or may reasonably be expected to result, directly or indirectly, in—

(i)

the making of offers to acquire or dispose of financial products; or

(ii)

the acceptance of offers of that kind.

(2)

However, subsection (1) does not apply to the extent that the facility constitutes—

(a)

a person making or accepting offers or invitations to acquire or dispose of financial products on the person’s own behalf or on behalf of 1 party to the transaction only (for example, a continuous issuer of financial products):

(b)

an issuer or a related body corporate of an issuer matching persons who wish to acquire financial products of that issuer with persons who wish to dispose of financial products of that issuer (whether at a specified price or otherwise):

(c)

a service that is covered by a market services licence:

(d)

any other conduct of a kind prescribed by the regulations.

(3)

Subsection (2)(a) does not apply if the conduct of a person is declared by the FMA, by notice under section 562(1)(i), to be conduct that is not exempt under that paragraph.

Compare: Corporations Act 2001 s 767A (Aust)