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Financial Markets Conduct Act 2013

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

53: Offence to knowingly or recklessly contravene section 50

You could also call this:

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

If you break section 50 of the Financial Markets Conduct Act 2013 on purpose or by being reckless, you commit an offence. This happens when you know or do not care that you need to give information to people you are offering financial products to. You can be punished if you do this. The punishment depends on who you are, and it can include imprisonment or a fine, with different limits for individuals and other cases, such as companies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4090992.

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

53Offence to knowingly or recklessly contravene section 50

  1. A person who contravenes section 50 commits an offence if the person knows that, or is reckless as to whether, the offer of financial products to A requires disclosure under this Part.

  2. A person who commits an offence under subsection (1) is liable on conviction,—

  3. in the case of an individual, to imprisonment for a term not exceeding 5 years, a fine not exceeding $500,000, or both; and
    1. in any other case, to a fine not exceeding $2.5 million.