The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - has filed a case stated proceeding to seek the Court's determination on legal issues about the use, confirmation, and acceptance, of eligible investor certificates in the wholesale investment sector.
The proceeding follows investigations into the use of eligible investor certificates by various wholesale property developers. These investigations followed the FMA's thematic review of wholesale offers of financial products.
A case stated proceeding is a process by which the FMA can ask the Court for its opinion on a question of law. It is not an action taken against any specific party. The FMA has previously used a case stated proceeding to seek clarity from the Court in relation to CBL. This is the second time the FMA has brought a case stated proceeding.
The purpose of the proceeding is to provide clarity to the market on clause 41 of Schedule 1 of the Financial Markets Conduct Act 2013 and to ensure confident participation in wholesale markets by offerors and eligible investors.
The answers from the Court will help to ensure those investors who require the protections provided by the Financial Markets Conduct Act receive those.
