Financial Markets Conduct (Phase 1) Regulations 2014

  • revoked
  • Financial Markets Conduct (Phase 1) Regulations 2014: revoked, on 1 December 2014, by regulation 281 of the Financial Markets Conduct Regulations 2014 (LI 2014/326).

Reprint as at 1 December 2014

Financial Markets Conduct (Phase 1) Regulations 2014

(LI 2014/50)

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 24th day of February 2014

Present:
His Excellency the Governor-General in Council

  • Financial Markets Conduct (Phase 1) Regulations 2014: revoked, on 1 December 2014, by regulation 281 of the Financial Markets Conduct Regulations 2014 (LI 2014/326).

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Ministry of Business, Innovation, and Employment.

Pursuant to subpart 1 of Part 9 of the Financial Markets Conduct Act 2013, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and on the recommendation of the Minister of Commerce made in accordance with sections 547(2), 549, and 550 of that Act, makes the following regulations.

Contents

1 Title

2 Commencement

Part 1
Preliminary provisions

3 Overview

4 Application

5 Interpretation

6 General provision relating to warning statements

7 Status of examples

8 Circumstance where different redemption date prevents debt securities from being of same class

9 Derivative definition prescribed times

Part 2
Fair dealing

10 Financial service does not include providing credit

Part 3
Disclosure of offers of financial products

11 Provisions relating to exclusions and other Schedule 1 of Act matters

12 Transitional Securities Act 1978 exemptions

13 Application of Schedule 1 requirements to transitional Securities Act 1978 exemptions

Part 4
Licensing and other regulation of market services

Exemptions from DIMS licensing requirement

14 Exemptions from DIMS licensing requirement

Prescribed intermediary services

15 Prescribed intermediary services

16 Meaning of crowd funding service and peer-to-peer lending service

Additional eligibility criteria

17 Additional eligibility criteria for crowd funding service

18 Additional eligibility criteria for peer-to-peer lending service

19 Eligibility criteria for authorised bodies

Procedural matters

20 FMA must have regard to compliance history of relevant parties

21 FMA must consult Reserve Bank in relation to banks, deposit takers, and insurers

Conditions of licences

22 General reporting condition

23 Condition for independent trustees to report serious problems

24 Condition for DIMS providers and prescribed intermediary service providers to keep documents and to give documents on request

25 Condition for DIMS providers to disclose if service is wholesale

26 Condition for intermediaries to notify FMA of suspected contraventions of Part 2 of Act or of investment cap

27 Condition for provider of crowd funding service to make warning statement available

28 Condition for provider of crowd funding service to obtain investor confirmation

29 Conditions are Part 6 services provisions

Additional conditions that FMA may impose on licences

30 General FMA conditions

31 Other FMA conditions for DIMS

32 Other FMA conditions for derivatives issuer

33 Other FMA conditions for crowd funding service or peer-to-peer lending service

Disclosure obligations for prescribed intermediary services

34 Disclosure obligations apply to prescribed intermediary services

35 Timing of disclosure for prescribed intermediary services

36 Disclosure statement for crowd funding service or peer-to-peer lending service

37 Disclosure statement must be worded and presented in clear, concise, and effective manner

38 Disclosure statement may refer to facility's Internet site

39 Prescribed intermediary service providers must provide transaction information to investors

40 How transaction information is made available

Client agreement requirements apply to prescribed intermediary services

41 Client agreement requirements apply to prescribed intermediary services

Client agreements

42 Time for entering into client agreement for prescribed intermediary services

43 Terms implied into client agreements

44 Client agreements for DIMS must provide for certain matters

45 Client agreements for crowd funding service must provide for certain matters

46 Client agreements for peer-to-peer lending service must provide for certain matters

47 Client agreements may use different terminology

Part 5
Financial reporting

48 Entities that are FMC reporting entities as a result of exclusions

49 Prescribed circumstances for definition of recipient of money from conduit issuer

Part 6
Enforcement, liability, and appeals

50 Financial service does not include providing credit in definition of restricted communication

51 Infringement offence fees

52 Infringement notice and reminder notice

Part 7
Transitional provisions

53 Transitional provisions

Schedule 1
Provisions relating to exclusions and other Schedule 1 matters

Schedule 2
Infringement fees

Schedule 3
Infringement notice

Schedule 4
Reminder notice

Schedule 5
Transitional provisions

Explanatory note

Gazette information

Reprint notes