Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Disclosure to investors

50: PDS must be given if offer requires disclosure

You could also call this:

"Get a PDS document before buying financial products if the seller needs to tell you more about them"

If someone makes you an offer to buy financial products and they need to give you information about it, they must give you a document called a PDS. You should get this PDS before you apply to buy the financial products. The person making the offer cannot accept your application or give you the financial products if you did not get the PDS first.

When you apply to buy financial products, it is called an application. This application is made by you, and it is for the financial products that you want to buy. You can find more information about when someone needs to give you information about financial products in sections 39 and 40, and in Schedule 1.

If someone wants to sell you financial products, they need to follow some rules. They need to give you a PDS if the rules say they have to give you information about the products. You can look at sections 39 and 40, and Schedule 1, to see when someone needs to give you information about financial products they are selling.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4090985.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rules
Previous

49: Purpose of PDS, or

"What a Product Disclosure Statement is meant to do: help you decide on a financial product."

Next

51: Certain situations in which section 50 does not need to be complied with, or

"When you don't need to follow the usual rules for giving information about financial products"

Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Disclosure to investors

50PDS must be given if offer requires disclosure

  1. This section applies if an offer of financial products is made to a person (A) to whom disclosure under this Part is required.

  2. A person must not accept an application, or issue or transfer the financial products to A, if a PDS for the regulated offer was not given to A before the application was made.

  3. In this section, application means an application for the financial products that is made by A.

  4. See sections 39 and 40 and Schedule 1, which contain provisions relating to when an offer of financial products to a person requires disclosure under this Part.