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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Application

47: Territorial scope of Part

You could also call this:

"When financial products are offered in New Zealand, this part of the law applies, no matter where they come from."

This Part of the law applies to offers of financial products in New Zealand. It does not matter where the issuer or offeror is from or where the financial product is transferred. You are considered to be offering financial products in New Zealand if someone in New Zealand receives your offer, unless you can show you tried to stop people in New Zealand from accepting it.

If you make an offer, it is considered to be made in New Zealand if someone in New Zealand gets it. But there are some people who do not have to follow this rule, and that is because of exclusions listed in clauses 3 to 5 of Schedule 1.

You have to take reasonable steps to ensure people in New Zealand cannot accept your offer if you do not want it to be considered made in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4090978.

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Part 3Disclosure of offers of financial products
Application

47Territorial scope of Part

  1. This Part applies to offers of financial products in New Zealand, regardless of—

  2. where any resulting issue or transfer occurs:
    1. where the issuer or offeror is resident, incorporated, or carries on business.

      1. For the purposes of subsection (1), financial products are offered in New Zealand if an offer of the financial products is received by a person in New Zealand, unless the offeror demonstrates that it has taken all reasonable steps to ensure that persons in New Zealand (other than persons referred to in subsection (3)) may not accept the offer.

      2. The persons referred to in this subsection are persons to whom disclosure under this Part is not required because of an exclusion under any of clauses 3 to 5 of Schedule 1.

      Compare
      • 1978 No 103 s 7