An FMA information request can feel alarming. Understanding your obligations — and your rights — from the outset is critical to protecting your interests.
The Financial Markets Authority (FMA) has broad statutory powers to require financial markets participants to produce documents and information. If you have received an FMA information request, it is important to act quickly and carefully.
An information request is not the same as being charged with an offence, but it is a serious matter. The FMA uses information requests as an investigative tool to gather evidence about potential breaches of the Financial Markets Conduct Act 2013 (FMCA) and other financial markets legislation.
Your obligations
You are generally required to comply with an FMA information request. Failure to comply, or providing false or misleading information, can itself constitute a breach of the FMCA and may result in civil or criminal liability.
Your rights
You have the right to seek legal advice before responding to an information request. You also have the right to claim legal professional privilege over communications with your lawyer. In some circumstances, you may have the right to claim the privilege against self-incrimination.
What you should do
The most important step is to seek specialist legal advice as soon as possible. An experienced financial markets lawyer can help you understand your obligations, identify any applicable privileges, and develop a strategy for responding to the FMA that protects your interests.
Early specialist advice can make a significant difference to the outcome of an FMA investigation. The FMA's approach to an investigation — and its ultimate decision about whether to take enforcement action — can be influenced by how a participant responds from the outset.