Financial Market Infrastructures Act 2021

Coat of Arms of New Zealand

Financial Market Infrastructures Act 2021

Public Act
 
2021 No 13
Date of assent
 
10 May 2021
Commencement
 
see section 2

Contents

1Title
2Commencement
3Purposes
4Overview of this Act
5Interpretation
6Transitional, savings, and related provisions
7Act binds the Crown
8Regulator
9Requirement to act jointly
10Cases where requirement to act jointly does not apply
11RBNZ and FMA working together
12General provisions about regulator’s functions and Ministers’ functions
13Purposes and principles of exercising powers under this Act (other than Part 4)
14Regulator’s power to require information
15Offence for failure to give information
16Regulator’s power to require information to be reviewed
17Offence for failure to obtain review
18Regulator’s power to require independent report
19Offence for failure to give or publish report
20Designation of FMIs by Minister
21Recommendations by regulator
22Restrictions on recommendations
23Matters to which regulator may have regard for purposes of recommendations
24Matters that regulator must take into account for purposes of deciding if FMI is systemically important
25Application for issue, revocation, or amendment of designation notice
26Process where regulator makes recommendation on own initiative
27Pecuniary penalty for failure to publish proposal
28Meaning of systemically important
29Content and publication of designation notice
30Offence for wrongly holding out system as designated FMI, etc
31Regulator may issue standards for designated FMIs
32Procedure for issuing standards
33Pecuniary penalty for contravention of standard
34Subject matter of standards
35Designated FMI’s rules
36Operators must publish copy of rules of designated FMI
37Pecuniary penalty for failure to publish copy of rules
38Time rule change comes into effect
39Operator of designated FMI may apply for approval of rule change
40Regulator may require change to designated FMI’s rules
41Regulator’s decision to approve rule change required under section 40
42Regulator’s decision not to approve rule change required under section 40
43Offence for contravention of section 40 or 42
44Changes to rules of designated FMIs that are overseas FMIs
45Pecuniary penalty for failure to give rule change instrument to regulator
46Publication of rule changes
47Designated FMIs to have FMI contingency plans
48Operator must notify activation of FMI contingency plan
49Regulator’s power to review FMI contingency plans, etc
50Regulator’s powers in relation to FMI contingency plans
51Regulator’s decision on change submitted by operator
52Offence for contravention of sections 49 to 51
53Application of this subpart
54Designated FMI’s rules relating to settlements, etc, are valid and enforceable
55Settlements must not be reversed, etc
56Effect of insolvency event on settlement
57Netting
58Underlying transactions, etc
59Interrelationships with other enactments
60Transfer of personal property in accordance with designated FMI’s rules effective
61Operators to be notified of insolvency event
62Regulator may appoint investigator
63Investigator’s powers
64Application for warrant
65Offences relating to investigations
66Regulator may require operator to take action in relation to contravention of this Act
67Approval, amendment, or rejection of remedial plan
68Other provisions relating to remedial notices and plans
69Offence for contravention of remedial notice, failure to give amended remedial plan, or failure to take steps to comply with remedial plan
70Regulator may accept voluntary undertaking
71Consequences of accepting undertaking
72Undertakings that include payment of money
73Operator may withdraw or amend undertaking
74Enforcement of voluntary undertakings
75Court must take into account certain matters
76Application of this Part
77Purposes for which powers under this Part may be exercised
78Principles for exercising powers under this Part
79Application of this subpart
80Directions to operator
81Giving and complying with direction does not place person in contravention, etc
82Power to make direction notice confidential
83Disclosure with regulator’s consent
84Offences for contravention of direction notice or confidentiality notice
85Direction to participant to comply with FMI’s rules
86Offence for contravention of direction notice
87Removal of director
88Process if regulator proposes to exercise power to remove director
89How power to remove director is exercised
90Power to make operator subject to statutory management
91Regulator’s recommendation under section 90
92Statutory management of operator whose home jurisdiction is not New Zealand
93Purposes of statutory management
94General duties of statutory manager
95Principles for statutory management
96Other duties of statutory manager
97Advisory committee
98Terminating appointment, or resignation, of member of advisory committee
99Application of FMI’s rules
100Statutory manager may decide that provision of rules is not to apply
101Statutory manager must pay calls, debts, and claims arising under FMI’s rules
102Purpose of new operator schemes
103Making of new operator scheme
104Consent required to make new operator scheme
105Effect of new operator scheme
106Transfer of property subject to security
107Registers
108Moratorium
109Power of statutory manager to sell business undertaking of operator under statutory management, etc
110Ministers’ approval
111Body corporate formed and registered also subject to statutory management
112Applicable provisions of Corporations (Investigation and Management) Act 1989
113Modifications relating to power to pay creditors and compromise claims
114Other modifications to Corporations (Investigation and Management) Act 1989
115Offences relating to statutory management
116Termination of statutory management
117Effect of termination of statutory management
118Termination or resignation of statutory manager’s appointment
119Appointment of new statutory manager
120Obligations incurred by statutory manager
121Statutory management does not place any person in contravention of enactment, etc
122Continuation of statutory management of company restored to New Zealand register
123Person who exercises powers under subpart not director of operator under statutory management
124Indemnity
125Certain rights relating to derivatives may be exercised after stay
126Regulator may reduce or extend stay on exercise of rights
127Penalties for offences
128Defence for certain offences
129Time for filing charging documents
130Pecuniary penalty orders
131Maximum amount of penalty
132Considerations for court
133Defences in pecuniary penalty proceeding for operator that contravenes standard
134Defence for other operator that is involved in contravention
135Rules of civil procedure and civil standard of proof apply to civil liability
136Court must order that recovery from pecuniary penalty be applied to regulator’s actual costs
137Liability of directors
138State of mind of directors, employees, or agents attributed to body corporate or other principal
139Person not liable for fine and pecuniary penalty for same conduct
140False or misleading information given for purposes of Act
141Disclosure of information between RBNZ and FMA
142Disclosure of information by RBNZ to other persons
143Offence for unauthorised disclosure
144Conditions relating to disclosure of information
145Restrictions on further disclosure of information
146Offence for unauthorised disclosure or use
147Effect of proceedings on exercise of powers to require information, etc
148Decision that exercise of powers is unlawful
149Applications, submissions, and other information given to regulator or other person in accordance with regulator’s requirement
150Revocation or amendment of requirements imposed, or directions given, by notice
151Publication requirements
152Regulator must publish statements of policies
153Power to make regulations
154RBNZ to have regard to directions about government policy objectives
155Limit on FMA’s powers under other enactments
156Protection from liability
157Conduct of directors, employees, or agents attributed to body corporate or other principal
158Prohibition on indemnities or insurance for directors or employees of operators that are not New Zealand companies
159Exception to prohibition
160Giving of notices by regulator or investigator
161Giving notices to agent
162Consequential amendments that come into force on day after Royal assent
163Consequential amendments that come into force by Order in Council
Legislative history
Administrative information

The Parliament of New Zealand enacts as follows: