The Financial Markets Authority (FMA) today filed civil proceedings under its new power to ‘stand in the shoes’ of another and exercise that person’s right to take action against a financial markets participant.
The power is conferred under section 34 of the Financial Markets Authority Act which was passed in 2011 but the FMA has until now been preoccupied by legacy cases from the finance company collapses.
Section 34 is important to the new emphasis on civil enforcement in the Financial Markets Conduct Act.
Chapman Tripp's commentaries on section 34:
Taking up arms for the investor - FMA's power to litigate
New super-regulator will pack a powerful punch
A regulator with teeth: the enforcement capabilities of the FMA
Roger Wallis interviewed on Radio New Zealand about the FMA's powers
The FMA's press statement is available