FMA to give confidentiality order recipients more support info

BIG chair Simon Haines says the group, a forum of more than 30 fund and wealth managers, thought it was an issue to look into.

“There has been a lot of unease permeating the industry around sections 25 and 44 of the Financial Markets Authority Act 2011.”

Section 25 empowers the FMA to order individuals or entities to provide information on possible violations of financial services and securities markets legislation. It can also impose a confidentiality order under section 44, prohibiting the communication of any information provided in connection with the inquiry or investigation.

This power is limited by the New Zealand Bill of Rights Act which protects the right to freedom of expression, including the freedom to seek, receive, and impart information.