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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Application

45: Treatment of offers of renewals and variations

You could also call this:

"Rules for when someone offers to renew or change a financial product you have"

When you look at offers to renew or change a financial product, it is like a new offer of the product. You treat an offer to renew or change a financial product as a new offer of that product, according to this Part and Schedule 1. If the issuer makes the change using the existing rules of the product, it is not considered a change.

If the terms or conditions of a financial product change, but the change happens according to the product's existing rules, you do not consider it a variation. You can find more information about when renewals and variations are excluded in clause 24 of Schedule 1. However, you may still need to provide some information under clause 26 of that schedule.

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Part 3Disclosure of offers of financial products
Application

45Treatment of offers of renewals and variations

  1. For the purposes of this Part and Schedule 1, an offer of a renewal or variation of the terms or conditions of a financial product made by the issuer is an offer of the financial product as renewed or varied.

  2. A change to the terms or conditions of a financial product is not a variation for the purposes of this section if the change is made in accordance with the existing terms or conditions of the financial product (for example, if the issuer exercises a power under the terms or conditions to change an interest rate).

  3. See clause 24 of Schedule 1 for an exclusion in relation to renewals and variations (but limited disclosure may be required under clause 26 of that schedule).