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General Equity: Warning Disclosure Order under section 49 of the Financial Markets Authority Act 2011

 

Order

TO: General Equity, Level 4, General Equity House, 17 Albert Street, Auckland 1010, New Zealand.

AND TO: all associated persons of General Equity (including any associated person that may be incorporated or formed after the date of this Order)

The Financial Markets Authority (FMA) makes the following Order under section 49(1) of the Financial Markets Authority Act 2011 against General Equity and associated persons of General Equity:

1. Any website operated by or on behalf of General Equity and each associated person of General Equity must contain, on the main page of the website, a warning statement in the form attached as Annexure A to this Order (Warning Statement).
2. The Warning Statement is required to be displayed:

(a) Prominently;
(b) In black font no smaller than the font contained in Annexure A to this Order; and
(c) In the same layout as the layout used in Annexure A to this Order.

3. General Equity must provide a copy of this order to each associated person of General Equity.
4. In this Order, pursuant to section 49(7)(d) of the Financial Markets Authority Act 2011, associated person has the same meaning as section 6(1) of the Financial Markets Conduct Act 2013, with the full meaning being set out in section 12 of that Act.

Note that a person who contravenes an Order made by FMA under Section 49 of the Financial Markets Authority Act 2011 commits an offence and is liable on summary conviction to a fine not exceeding $300,000.

This Order is made subject to any further Orders of FMA.

Dated at Wellington this 29th day of September 2014.

Copy of order

General Equity: Warning Disclosure Order under Section 49 of the Financial Markets Authority Act 2011

Reasons for making the order

Following issue of the warning about General Equity FMA made an Order under section 49(1) of the Financial Markets Authority Act 2011 against General Equity and associated persons of General Equity, requiring them to prominently disclose a copy of the warning on 1 or more Internet sites maintained by or on behalf of the those persons (a warning disclosure order). FMA made the warning disclosure order for the following reasons:

  1. It is important that those dealing with General Equity are made aware of FMA’s concerns as expressed in the warning.
  2. A disclosure order under section 49 ensures that the warning is disseminated directly by General Equity, which will result in a wider and more targeted and relevant distribution than might otherwise be the case if FMA relied solely on publishing the warning on the FMA website.
  3. In particular, individuals and entities from overseas who might be dealing with General Equity are more likely to be made aware of the warning if it is published by General Equity.