Financial industry on edge as regulator exercises secret powers

DLA Piper's Emma Moran questions the FMA's use of special powers. (Image: DLA Piper)

Wed, 31 May 2023

Here’s a little-known fact.Under section 25 of its governing legislation, the Financial Markets Authority (FMA) has extraordinary powers to demand any of its subjects cough up whatever information the regulator fancies.Here’s a lesser-known fact.The info-seeking missives can also come with a side-order of section 44, which applies an oath of silence (on pain of criminal charges and fines of up to $300,000) to any selected squealers.Or, as the relevant clause of the Financial Markets Conduct Act states: “The FMA may, on its own...

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