Financial Market Infrastructures Act 2021

Warning: Some amendments have not yet been incorporated

Search within this Act

Financial Market Infrastructures Act 2021

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

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

The Parliament of New Zealand enacts as follows:

New Zealand Legislation

List of access keys

Quick search

My recent searches

Financial Market Infrastructures Act 2021

Financial Market Infrastructures Act 2021

Contents