Court of Appeal rules in favour of FMA over ANZ disclosure case

Karen Chang, head of enforcement at the Financial Markets Authority. Photo / Supplied

The Court of Appeal has ruled in favour of the Financial Markets Authority in a dispute over disclosure with the ANZ Bank.

ANZ had challenged the FMA's decision to disclose to third parties documents it had obtained from ANZ through the exercise of its statutory powers.

The FMA had obtained information from the ANZ as part of its investigation into a company and the subsequent failure of that company, which caused loss to investors.

ANZ had successfully argued in the High Court that the proposed disclosure as outside the powers of the FMA and the FMA appealed.

But in decision released today, the Court of Appeal found that it was within the FMA's powers to disclose the documents.

"We disagree with the Judge's assessment that the disclosure would not be for a permitted purpose," it said.

"To the contrary, we see disclosure for the purposes of assisting the FMA and investors to decide whether to bring a claim against a financial market participant as exactly within the purposes of the Act," the Court of Appeal said.

ANZ has sought leave to appeal the decision to the Supreme Court and to maintain confidentiality over the judgment.

Some details in the judgment were suppressed because of the Supreme Court appeal.

"The FMA acknowledges this judgment and is pleased the Appeal Court has affirmed the FMA's exercise of its powers in this case was lawful and appropriate," Karen Chang, the FMA's head of enforcement, said in a statement.

"More specifically, that the FMA may disclose information it has obtained under its compulsory powers to investors in appropriate circumstances," she said.