Module Four

Question 1

12 Information Privacy Principles:

One, Purpose for collection of personal information

Answer 1

Must only be collected for a lawful purpose, be necessary and relevant.

Question 2

12 Information Privacy Principles:

Two, source of personal information.

Answer 2

Should normally be collected from the individual concerned.

Question 3

12 Information Privacy Principles:

Three, collection of information from subject.

Answer 3

Individuals should be given full details about the information collected.

Question 4

12 Information Privacy Principles:

Four, manner of collection of personal information.

Answer 4

Information must be collected in a lawful, fair and non-intrusive way.

Question 5

12 Information Privacy Principles:

Five, Storage and security of personal information.

Answer 5

Information held by an agency must be kept safe and secure.

Question 6

12 Information Privacy Principles:

Six, Access to personal information.

Answer 6

An individual must have access to information about them.

Question 7

12 Information Privacy Principles:

Seven, Correction of personal information.

Answer 7

An individual must be able to correct information about them.

Question 8

12 Information Privacy Principles:

Eight: Accuracy of personal information to be checked before use.

Answer 8

An agency must make sure information is correct before using it.

Question 9

12 Information Privacy Principles:

Nine, Agency is not to keep personal information for longer than necessary.

Answer 9

Only keep information as long as it’s needed.

Question 10

12 Information Privacy Principles:

Ten, Limits on use of personal information.

Answer 10

An agency may only use information for the purpose for which it was collected.

Question 11

12 Information Privacy Principles:

Eleven: Limits on disclosure of personal information.

Answer 11

Generally an agency must not disclose information unless required by law.

Question 12

12 Information Privacy Principles:

Twelve, Unique identifiers.

Answer 12

… must not assign a unique identifier to an individual such as a number unless necessary and the person can not be identified.

Question 13

Enforcement of the Consumer Guarantees Act: If the problem can be remedied the consumer can…

Answer 13

• Require the supplier to remedy it within a reasonable time.
• if supplier fails or refuses, have it remedied elsewhere and recover costs from the supplier.

Question 14

Enforcement of the Consumer Guarantees Act: if a problem can’t be remedied and is substantial…

Answer 14

• cancel the contract.

- claim compensation.

Question 15

Enforcement of the Consumer Guarantees Act: claims are handled by …

Answer 15

The Disputes Tribunal or the District Court.

Question 16

Enforcement of the Consumer Guarantees Act: Exceptions to the right of redress…

Answer 16

• act/fault/omission or representation made by anyone other than the supplier/servant or agent of the supplier.
• a cause independent of human control.

Question 17

A Consumer complains to the FMA: If the breach concerns the FAA, who investigates the complaint?

Answer 17

The FMA.

Question 18

A Consumer complains to the FMA: If the breach concerns the Code, who investigates the complaint?

Answer 18

The Disciplinary Committee.

Question 19

Information regarding the identity of an AFA or their client is protected under the FAA in the event they lodge a complaint. This means that …

Answer 19

If a report is made in good faith the AFA will not face legal repercussions or termination of employment as a consequence.

Question 20

The FMA may issue a direction for two types of offence:

Answer 20

• breach of a disclosure or conduct obligation.

- breach of the terms and conditions of their authorisation.

Question 21

Enforcement of FAA:

What time period does a Temporary banning order cover?

If issuing the order what must the FMA do?

Answer 21

• 14 days or fewer.

- Notify the AFA in writing, publish the name and period the ban applies to.

Question 22

Enforcement of FAA:

To apply an injunction the FMA must apply to the high court. What is an injunction?

Answer 22

An injunction restrains or compels a certain action. i.e. the high court may order a person to refrain from conduct that contravenes the Act.

Question 23

Enforcement of FAA:

To achieve a compensation order the FMA must apply to the high court.
The High Court can impose a fine or ‘pecuniary order’ for what?

Answer 23

• Contravening the requirements for accepting a client as an eligible investor.
• This may be imposed within 3 years of the contravention.

Question 24

Enforcement of FAA:

To achieve a compensation order the FMA must apply to the high court.
An application may be made by the ___ or the ________ person within ______ .of the pecuniary order.

Answer 24

• FMA
• affected person
• One year

Question 25

Enforcement of FAA:
Right of Appeal

FMA or the Committee must notify the person of the right of appeal and the time limit an appeal must be lodged.
What is the time limit?

Answer 25

• within 20 working days of the order

Question 26

What is Unsubstantiated Representation?

Answer 26

Where a person does not have reasonable grounds to make a claim about a product or service.

Question 27

What is the purpose of a contravention order?

Answer 27

To allow a person to apply for a compensatory order without having the burden of proving the contravention I.e the order is conclusive evidence.