FINANCIAL SERVICES REGULATION | 20 AUGUST 2014
First use of FMA power to exercise an investor's right to sue
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 commentaries on section 34 are:
The FMA's press statement is available here.