Contents

Appendix 1
Table of civil pecuniary penalty provisions

Act Regulatory body Civil pecuniary penalty provision(s) Maximum penalty amount Reference to rules of court or evidence Parallel criminal offences Double jeopardy protections
Anti-Money Laundering and Countering Financing of Terrorism Act 2009 s 130(1): One of three “supervisors”, depending on the reporting entity:
  • Reserve Bank (banks, life insurers, non-bank deposit takers)
  • Financial Markets Authority (issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, financial advisers)
  • Department of Internal Affairs (casinos, non- deposit taking lenders, money changers, and other reporting entities)
s 78: failure by a reporting entity 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.
s 90: for a breach of s 78(b), (c) (d) or (g)–
  • $100,000 (individual)
  • $1m (body corporate)
and for a breach of s 78(a), (e) or (f)–
  • $200,000 (individual)
  • $2m (body corporate).
s 72(2): the enforcement body may, by order of the Court, obtain discovery and administer interrogatories. s 91: an offence to breach the same requirements knowingly or recklessly. s 74: no civil pecuniary penalty and criminal sanction for same or substantially same conduct.

s 73: civil pecuniary penalty proceedings must be stayed if prosecution is commenced, but the stay can be lifted once the prosecution is complete.
Biosecurity Act 1993 s 154H and s 2: Chief Executive of the Ministry for Primary Industries. s 154J: 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.
s 154J: $500,000 (individual); for a body corporate, the greater of $10m; 3 x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable). s 154J(5): the Chief Executive may, by order of the Court, obtain discovery and administer interrogatories. Breach of a number of civil pecuniary penalty provisions is also an offence, including for example ss 16A, 18, 29(1), 52, 53. s 154L(2)–(3): existing uncompleted civil pecuniary penalty proceedings must be stayed if a prosecution is commenced.

s 154L(4): no prosecution may be commenced if a civil pecuniary penalty has been imposed that remains in place after all appeal rights have not been exercised or have been abandoned/
exhausted.
Commerce Act 1986 s 80(1): Commerce Commission. s 74D: breaching a cease and desist order. s 74D(2): $500,000 (against “a person”). s 79A: the Commission may, by order of the Court, obtain discovery and administer interrogatories.   s 79B: once proceedings in either jurisdiction are determined, a penalty or sanction may not be imposed in the alternative jurisdiction for the same conduct, events, transactions or other matters.
s 80: breaching provisions relating to restrictive trade practices (and for attempt, aiding, abetting, inducing, being knowingly concerned in, conspiring to). s 80(2B): $500,000 (individual); for a body corporate, the greater of $10m; 3 x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable).
s 80B: breaching s 80A (no indemnity against certain pecuniary penalties). s 80B(2): 2 x value of indemnity given.
s 83: breaching provisions relating to business acquisitions likely to have effect of substantially lessening competition in market (and for attempt, aiding, abetting, inducing, being knowingly concerned in, conspiring to). s 83(1): $500,000 (individual) or $5m (body corporate), for each act or omission.
s 85A: breach of an undertaking given to Commission re business acquisitions (and for attempt, aiding, abetting, inducing, being knowingly concerned in, conspiring to). s 85A(3): $500,000 for each act or omission (against “a person”).
s 86: contravening information disclosure requirement for regulated goods or services (including disclosing false or misleading information) (and for attempt, aiding, abetting, inducing, being knowingly concerned in, conspiring to). s 86(3): $500,000 (individual) or $5m (body corporate). s 86B: offence of intentionally contravening information disclosure requirement for regulated goods or services ($200,000 individual, $1m body corporate).
s 87: contravening price-quality requirement for regulated goods and services (including refusing to comply with quality standards) (and for attempt, aiding, abetting, inducing, being knowingly concerned in, conspiring to). s 87(3): $500,000 (individual) or $5m (body corporate). s 87B: offence of intentionally contravening price-quality requirement for regulated goods or services ($200,000 individual, $1m body corporate).
Dairy Industry Restructuring Act 2001 / Dairy Industry Restructuring (Raw Milk) Regulations 2001 s 141(1): Commerce Commission. s 141: conduct breaching part 2, subpart 5–Regulation of dairy markets and obligations of new co-op (Fonterra). s 141: breach of regulations made under s 115–Regulations relating to raw milk. s 141(2): $500,000 (individual); for a body corporate, the greater of $10m or 3 x commercial gain or 10 per cent of turnover. s 144(3): the Commission may, by order of the Court, obtain discovery and administer interrogatories. s 118: regulatory offences relevant to part 2, subpart 5, eg failing to provide information required under raw milk regulations.
Financial Advisers Act 2008 s 137K(1): Financial Markets Authority. s 137K: contravening a wholesale certification requirement under s 5E. s 137K(2): $100,000 (individual) or $300,000 (for an “entity”: an incorporated or unincorporated body and sole trustees).
Financial Service Providers (Registration and Dispute Resolution) Act 2008 s 79A(1): Financial Markets Authority. s 79AK: contravening a wholesale certification requirement under s 49B. s 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 ss 124B and 124A: Chief Executive of the Ministry for Primary Industries. s 124B: breaches relating to new organisms (developing, field testing, importing, releasing, possessing, disposing of, failing to comply with regulatory controls). s 124C: $500,000 (individual); for a body corporate, the greater of $10m; 3 x commercial gain (if gain readily ascertainable); or 10 per cent of turnover (if gain not readily ascertainable). s 124E(b): the Chief Executive may, by order of the Court, obtain discovery and administer interrogatories. s 109(1)(b): offences relating to new organisms (developing or field testing; knowingly importing or releasing; knowingly, recklessly or negligently possessing or disposing of). s 124F: existing uncompleted civil pecuniary penalty proceedings must be stayed if a prosecution is commenced.
Land Transport Management Act 2003 s 46: provision for civil penalties in regulations, targeting breach of conditions by a tolling authority operating a road tolling scheme – NONE ENACTED.
Overseas Investment Act 2005 / Overseas Investment Regulations 2005 s 48(1) and s 30: the Chief Executive of the “regulating department” (Land Information New Zealand, delegated to the Overseas Investment Office). s 48(1)(a)–(d):
  • contravening the Act;  
  • committing an offence under the Act;  
  • failing to comply with a notice to provide information or a statutory declaration under ss 38–40;  
  • failing to comply with a condition of consent or an exemption.  
s 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”). ss 42–45:
  • giving effect to an overseas investment without consent;  
  • knowingly or recklessly entering into a transaction or executing an instrument or taking any step for the purpose of or having the effect of, directly or indirectly, defeating, evading or circumventing the Act;  
  • obstructive or deceptive conduct against a person exercising authority under the Act or regulations;
  • failing to comply with a notice, requirement or condition of the Act or regulations.  
s 48(3): no civil pecuniary penalty and criminal fine for the same conduct.
s 53: “administrative penalty” for retrospective consent. reg 32: $20,000 (against “an applicant”).
Securities Act 1978 / Securities Act (Contributory Mortgages) Regulations 1988 s 55C: Financial Markets Authority. s 55C: engaging in a “civil liability event” that materially prejudices subscribers, is likely to materially damage NZ securities markets, or is otherwise serious:
  • distributing an advertisement or prospectus including an untrue statement;  
  • breaching the contributory mortgages regulations.  
s 55F(1): $500,000 (individual) or $5m (body corporate), for each civil liability event. s 57D: the usual rules of court and evidence and procedure for civil proceedings apply. s 58: offence for individuals to distribute prospectus including an untrue statement.

s 59: offence of offering, allotting or distributing a registered prospectus relating to an interest in a contributory mortgage in contravention of regulations.
s 57C: no civil pecuniary penalty and criminal fine for the same conduct.
Securities Markets Act 1988 s 42T(1): Financial Markets Authority. s 42T: contravening a “civil remedy provision” that materially prejudices third parties’ interests, is likely to materially damage NZ securities markets, or is otherwise serious:
  • insider conduct or market manipulation;  
  • breaches relating to continuous and substantial holdings disclosures;  
  • breaches relating to unsolicited offers.  
s 42W(1): the greater of: the consideration for the transaction; 3 x 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”).

s 42W(2): $1m for a breach of any other civil remedy provision (against “a person”).
s 42ZI: the usual rules of court and evidence and procedure for civil proceedings apply. s 35BA: an offence to know, or being ought to know, of requirements to disclose information in accordance with a substantial holding disclosure obligation and failing to do so. s 43ZC: no civil pecuniary penalty and criminal fine for the same conduct.
Securities Trustees and Statutory Supervisors Act 2011 s 41(1): Financial Markets Authority. s 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 of the Reserve Bank of New Zealand Act 1989;  
  • Retirement Villages Act 2003;  
  • Securities Act 1978;  
  • Unit Trusts Act 1960.  
s 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”). s 43(4): the usual rules of court and evidence and procedure for civil proceedings apply. None in this Act but see offence provisions under other Acts, eg s 29 Retirement Villages Act 2003 requiring statutory supervisors to hold residents’ payments in an interest-bearing account. s 41(4): once proceedings in either jurisdiction are determined, a penalty or sanction may not be imposed in other jurisdiction for the same contravention.
Takeovers Act 1993 s 33M: Takeovers Panel s 33M(c): prejudicial, damaging or otherwise serious breaches of the takeovers code. s 33P: $500,000 (individual) or $5m (body corporate), for each contravention. s 43B: the usual rules of court and evidence and procedure for civil proceedings apply.   s 44X: no civil pecuniary penalty and criminal fine for the same conduct.
Telecommunications Act 2001 s 156L(1): Commerce Commission. s 156L(1)(a): breaching an undertaking given under Part 2A (structural separation of Telecom). s156L(1)(ab): breaching an undertaking given under Part 4AA (providers under Ultra-fast Broadband and Rural Broadband Initiative). s 156L(3): $10m (against “a person”).
s 156L(1)(c): breaching a provision contained in s 156A. s 156L(3): between $300,000 and $10m depending on the provision breached.
s 156Q: breach of an enforceable matter filed in the High Court under s 156P(1). s 156R: the amount of commercial gain less any compensatory damages.
Telecommunications (Interception Capability) Act 2004 s 27(1) and s 3: a “surveillance agency”–
  • Police  
  • NZ Security Intelligence Service  
  • Government Communications Security Bureau.  
s 27: contravening a High Court compliance order. s 27: $500,000 plus $50,000 per day for continuing contraventions (against “a person”).
Tokelau (Territorial Sea and Exclusive Economic Zone) Act 1977 s 8(n): provision for civil penalties in regulations, targeting breach of controls on foreign fishing in exclusive economic zone – NONE ENACTED.
Unsolicited Electronic Messages Act 2007 s 45(1) and s 4: the “enforcement department” (the Department of Internal Affairs, Anti-Spam Compliance Unit). s 45: committing a “civil liability event”–
  • sending unsolicited commercial electronic messages;  
  • sending commercial electronic messages without sender information or unsubscribe facilities;  
  • committing a breach related to address-harvesting software and harvested-address lists.  
s 45(3): $200,000 (individual).

s 45(4): $500,000 (organisation).
s 49: the usual rules of court and evidence and procedure for civil proceedings apply.