Contents

Appendix B
Table of pecuniary penalty provisions

Act Regulatory body Pecuniary penalty provision(s) Maximum penalty amount
Anti-Money Laundering and Countering Financing of Terrorism Act 2009 One of three “supervisors”, depending on the reporting entity:

Reserve Bank (for banks, life insurers, non-bank deposit takers);

Financial Markets Authority (for issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, financial advisers);

Department of Internal Affairs (for casinos, non- deposit taking lenders, money changers, and other reporting entities).
Section 78: failure by a reporting entity (financial institution or casino) to comply with any AML/CFT requirements as set out in Part 2, including failure to comply with s 78(a)–(g), for example:
  • failing to conduct customer due diligence;
  • failing to adequately monitor accounts and transactions;
  • failing to implement an AML/CFT programme.
Section 90: for a breach of s 78(b), (c) (d) or (g)–

$100,000 (individual)

$1m (body corp)

and for a breach of s 78(a), (e) or (f)–

$200,000 (individual)

$2m (body corp).
Biosecurity Act 1993 Chief executive of the Ministry for Primary Industries. Section 154H: failure to comply with–

ss 16A, 16B, 16C (importers’ duties);

ss 18(1)(b), 24D(1)(a), 25(1), (2), (8), (9), 27A, 29(1), 29(2) (clearance of risk goods);

s 40(6) (duties of operators of transitional/containment facilities);

ss 52, 53 (handling of pests/unwanted organisms);

s 122 (inspectors’ directions);

ss 130(3), 134(1) (restrictions on risk areas);

regulations made under s 150 (biosecurity emergencies);

directions or requirements under Part 7 (exigency actions);

requirements in rules or regulations declared to give rise to civil liability.
Section 154J: $500,000 (individual)

For a body corporate, the greater of $10m; 3x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable).
Commerce Act 1986 Commerce Commission. Section 74D: breaching a cease and desist order. Section 74D(2): $500,000 (against “a person”).
Section 80: breaching provisions relating to restrictive trade practices (and for attempting, aiding, abetting, inducing, being knowingly concerned in, or conspiring to). Section 80(2B): $500,000 (individual);

For a body corporate, the greater of $10m; 3x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable).
Section 80B: breaching s 80A (no indemnity against certain pecuniary penalties). Section 80B(2): 2x value of indemnity given.
Section 83: breaching provisions relating to business acquisitions likely to have effect of substantially lessening competition in market (and for attempting, aiding, abetting, inducing, being knowingly concerned in, or conspiring to). Section 83(1): $500,000 (individual) or $5m (body corporate), for each act or omission.
Section 85A: breach of an undertaking given to Commission re business acquisitions (and for attempting, aiding, abetting, inducing, being knowingly concerned in, or conspiring to). Section 85A(3): $500,000 for each act or omission (against “a person”).  
Section 86: contravening information disclosure requirement for regulated goods or services (including disclosing false or misleading information) (and for attempting, aiding, abetting, inducing, being knowingly concerned in, or conspiring to). Section 86(3): $500,000 (individual) or $5m (body corporate).  
Section 87: contravening price-quality requirement for regulated goods and services (including refusing to comply with quality standards) (and for attempting, aiding, abetting, inducing, being knowingly concerned in, or conspiring to). Section 87(3): $500,000 (individual) or $5m (body corporate).  
Dairy Industry Restructuring Act 2001 / Dairy Industry Restructuring
​(Raw Milk) Regulations 2001
Commerce Commission. Section 141: conduct breaching subpart 5, “Regulation of dairy markets and obligations of new co-op” (Fonterra).

Section 141: breach of regulations made under s 115 (regulations relating to raw milk).
Section 141(2): $500,000 (individual);

For a body corporate, the greater of $10m or 3x commercial gain or
10 per cent turnover.  
Electricity Industry Act 2010 Electricity Authority. Section 80: breaching a provision of Part 3 of the Act, “Separation of distribution from certain generation and retailing”. Section 80(2): $500,000 (individual);

For a body corporate, the greater of $10m or 3x commercial gain or
10 per cent turnover.
Financial Advisers Act 2008 Financial Markets Authority. Section 137K: contravening a wholesale certification requirement under s 5E. Section 137K(2): $100,000 (individual) or $300,000 (for an “entity”: an incorporated or unincorporated body and sole trustees).
Financial Markets Conduct Act 2013603 Financial Markets Authority.    
Financial Service Providers (Registration and Dispute Resolution) Act 2008 Financial Markets Authority. Section 79AK: contravening a wholesale certification requirement under s 49B. Section 137K(2): $100,000 (individual) or $300,000 (for an “entity”: an incorporated or unincorporated body and sole trustees).
Hazardous Substances and New Organisms Act 1996 Chief executive of the Ministry for Primary Industries. Section 124B: breaches relating to new organisms (developing, field testing, importing, releasing, possessing, disposing of, failing to comply with regulatory controls). Section 124C: $500,000 (individual)

For a body corporate, the greater of $10m; 3x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable).
Overseas Investment Act 2005 / Overseas Investment Regulations 2005 Chief executive of the “regulating department” (Land Information New Zealand, delegated to the Overseas Investment Office). Section 48(1):
(a) contravening the Act;
(b) committing an offence under the Act;
(c) failing to comply with a notice to provide information or a statutory declaration under ss 38–40;
(d) failing to comply with condition of consent or exemption.
Section 48(2): greater of (a) $300,000; or (b) any quantifiable gain (eg increase in value of property since acquisition); or (c) the cost of remedying the breach of condition; or (d) the loss suffered by a person in relation to a breach of condition (against “a person”).
Section 53: “administrative penalty” for retrospective consent. Regulation 32: $20,000 (against “an applicant”).
Securities Act 1978 / Securities Act (Contributory Mortgages) Regulations 1988604 Financial Markets Authority. Section 55C:
  • engaging in a “civil liability event” that materially prejudices subscribers; is likely to materially damage NZ securities markets; or is otherwise serious.
A “civil liability event” is  
  • distributing an advertisement or prospectus including an untrue statement; or
  • breaching the contributory mortgage regulations.
Section 55F(1): $500,000 (individual) or $5m (body corporate), for each civil liability event.
Securities Markets Act 1988605 Financial Markets Authority. Section 42T:

 
  • contravening a “civil remedy provision” that materially prejudices third parties’ interests, is likely to materially damage NZ securities markets, or is otherwise serious.
A "civil remedy provision" means:
 
  • insider conduct or market manipulation;
  • breaches relating to continuous and substantial holdings disclosures; or
  • breaches relating to unsolicited offers.
Section 42W(1): the greater of: the consideration for transaction; 3x the gain made or loss avoided by person carrying out the conduct; or $1m, for breach of an insider conduct, market manipulation or unsolicited offer prohibition (against “a person”).

Section 42W(2): $1m for a breach of any other civil remedy provision (against “ a person”).
Securities Trustees and Statutory Supervisors Act 2011 Financial Markets Authority. Section 41: contravention of a licensee obligation contained in:

 
  • a governing document;
  • an offer of security;
  • a Court order relating to a supervised interest;
  • this Act; Kiwisaver Act 2006; Part 5D Reserve Bank of NZ Act 1989; Retirement Villages Act 2003; Securities Act 1978; Unit Trusts Act 1960.
Section 41(3): $200,000 if the contravention is materially prejudicial to security holders’ or residents’ interests; $100,000 in all other cases (against “a licensee”).
Takeovers Act 1993 Takeovers Panel. Section 33M(c): prejudicial, damaging or otherwise serious breaches of the takeovers code. Section 33P: $500,000 (individual) or $5 m (body corporate), for each contravention.
Telecommunications Act 2001 Commerce Commission. Section 156L(1):
(a) breaching an undertaking given under Part 2A (structural separation of Telecom). (ab) breaching an undertaking given under Part 4AA (providers under Ultra-fast Broadband and Rural Broadband Initiative).
Section 156L(3): $10m (against “a person”).        
Section 156L(1)(c): breaching a provision contained in s 156A. Section 156L(3): between $300,000 and $10m depending on the provision breached.
Section 156Q: breach of an enforceable matter filed in the High Court under s 156P(1). Section 156R: the amount of commercial gain less any compensatory damages.
Telecommunications (Interception Capability and Security) Act 2013.   New Zealand Police

New Zealand Security Intelligence Service

Government Communications Security Bureau

Any specified law enforcement agency within the meaning of section 50 of the Search and Surveillance Act 2012 that is approved by an Order in Council under that section to use interception devices (currently the Department of Internal Affairs or the New Zealand Customs Service).
Section 97: a serious non-compliance with any of the duties under the Act or contravening a compliance order. Section 98: $500,000 plus $50,000 per day for continuing contraventions (against “a person”).  
Unsolicited Electronic Messages Act 2007 Department of Internal Affairs. Section 45: committing a “civil liability event”:

  • sending unsolicited commercial electronic messages;
  • sending commercial electronic messages without sender information or unsubscribe facilities; or
  • committing a breach related to address-harvesting software and harvested-address lists.
Section 45(3): $200,000 (individual).

Section 45(4): $500,000 (organisation).  
603The pecuniary penalty provisions come into force on 1 April 2017 or earlier as provided by Order in Council.
604Act to be repealed by Financial Markets (Repeals and Amendments) Act 2013 as from 1 April 2017, or earlier as provided by Order in Council. Regulations revoked by Financial Markets (Repeals and Amendments) Act 2013. 
605To be repealed by Financial Markets (Repeals and Amendments) Act 2013 as from 1 April 2017, or earlier as provided by Order in Council.