New Zealand Legislation: Supplementary Order Papers
Supplementary Order Papers (SOPs) are proposed amendments to Bills
Supplementary Order Papers (SOPs) are proposed amendments to Bills
New cross-heading and new clause 46A
To insert the following cross-heading and clause after clause 46 (after line 14 on page 89):
Commission's direction in respect of breach of disclosure or conduct obligation
46A Commission may give financial adviser direction in respect of breach of disclosure or conduct obligation
(1) This section applies if the Commission has reason to believe that a financial adviser is in breach of a disclosure or conduct obligation.
(2) The Commission may give the financial adviser notice of his or her alleged breach and, if the Commission does give a notice of breach, the Commission must also give the financial adviser a reasonable opportunity to respond.
(3) If the Commission concludes, after considering the financial adviser's response, that the financial adviser is in breach, the Commission may give the financial adviser a direction in writing.
(4) The direction may—
(a) direct the financial adviser to comply with the conduct or disclosure obligation:
(b) stipulate any steps that the financial adviser must take in order to comply with the obligation:
(c) require the financial adviser to report to the Commission within 28 days of the date of the direction stating how and when the Commission's direction will be implemented.
(5) A financial adviser who fails to comply with a direction by the Commission commits an offence (see section 128A).
(6) Nothing in this section precludes the Commission from exercising any of its other powers under this Act against a financial adviser.