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Financial Markets Conduct Act 2013

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

54: Right to withdraw

You could also call this:

"Getting your money back if a seller breaks the rules when selling you financial products"

If you buy financial products and the seller does not follow the rules in section 50, you have the right to withdraw from the deal. You can get your money back if it is not a derivative, or you can withdraw from the derivative. You can exercise this right by telling the seller you want to withdraw within a certain time frame. This time frame is either six months after you find out the rules were broken, or 12 months after you got the financial products, whichever comes first. You can tell the seller you want to withdraw in any way that shows you mean it, such as by talking or writing to them. This right to withdraw does not affect any other consequences the seller might face for breaking the rules in section 50.

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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"

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55: Offeror obligations if notice of withdrawal given, or

"What happens if you change your mind about a financial product and want your money back?"

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

54Right to withdraw

  1. If a person contravenes section 50 in respect of an offer of financial products to a person (A), A has the right to—

  2. withdraw from holding the financial products and to have the relevant money repaid (in any case other than a derivative); or
    1. in the case of a derivative, withdraw from the derivative.

      1. The right referred to in subsection (1) is exercisable by A giving to the offeror notice of the exercise of the right within the earlier of—

      2. 6 months after A knows, or ought reasonably to know, that section 50 has been contravened; and
        1. 12 months after the financial products are issued or transferred to A.

          1. Notice under this section may be expressed in any way (including oral or written) that shows the intention of A to withdraw from holding the financial product or from the derivative.

          2. This section and sections 55 and 56 do not limit any other liability that a person may have for a contravention of section 50.