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Financial Markets Conduct Act 2013

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

52: PDS treated as having been given if application form used was included in, or accompanied by, PDS

You could also call this:

"You're considered to have got the product info if the application form came with it"

When you invest in financial products, the person offering them must give you a document called a Product Disclosure Statement (PDS). If you fill out an application form to buy these products, you are treated as having received the PDS if certain conditions are met. The application form must say which PDS it is for, you must confirm you got the PDS, and the offeror must think the form was with the PDS when they gave it out.

The offeror must have a good reason to believe the application form was included with the PDS, or that you copied it from a form that was with the PDS. This is according to section 50, which says what the offeror must do.

The application form must clearly identify the PDS it relates to, so you can easily see which one it is.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4090990.

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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"

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53: Offence to knowingly or recklessly contravene section 50, or

"Breaking the rules about giving information when selling financial products can get you in trouble"

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

52PDS treated as having been given if application form used was included in, or accompanied by, PDS

  1. An offeror must be treated as having complied with section 50 in respect of an offer of financial products to a person (A) if—

  2. the offeror issues or transfers the financial products to A in response to an application form; and
    1. the application form identifies the PDS to which it relates; and
      1. A confirms in the application form that A has received the PDS; and
        1. the offeror has reasonable grounds to believe that—
          1. the application form was included in, or accompanied by, the PDS when the form was distributed by or on behalf of the offeror; or
            1. the form was copied, or directly derived, by the person making the application from a form referred to in subparagraph (i).

            2. The identification of the PDS under subsection (1)(b) must be reasonably prominent.