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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Content and presentation of product disclosure statements and register entries

60: Consent of experts and persons who make endorsements

You could also call this:

"Getting permission from experts before using their statements in important documents"

When you prepare a document called a Product Disclosure Statement (PDS), you must get permission from experts before including their statements. You need to get this permission in writing and the expert must agree to the exact words you use. The PDS must also say that the expert gave you permission.

If an expert changes their mind, they can withdraw their permission before the PDS is lodged. You cannot include their statement if they withdraw their permission. There is an exception for statements from approved rating agencies, which are special organisations that rate financial products.

In this context, an expert is someone who is seen as knowledgeable in their field, but not someone who is just a director or senior manager of a company. An endorsement is a statement that encourages people to buy a financial product, and it must be about a specific product or company. You can find more information about approved rating agencies in section 80 of the Banking (Prudential Supervision) Act 1989, section 86 of the Non-bank Deposit Takers Act 2013, or section 62 of the Insurance (Prudential Supervision) Act 2010.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4090999.

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Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Content and presentation of product disclosure statements and register entries

60Consent of experts and persons who make endorsements

  1. An issuer that prepares, or is required to prepare, a PDS must ensure that the PDS and the register entry only include an expert statement or endorsement made by a person (A), or a statement said in the PDS or register entry to be based on an expert statement or endorsement made by a person (A), if—

  2. A has consented in writing to the statement being included in the PDS or register entry in the form and context in which it is included; and
    1. the PDS or register entry states that A has given the consent; and
      1. A has not withdrawn the consent before the PDS is lodged with the Registrar.

        1. Nothing in subsection (1) applies in relation to any statement given by an approved rating agency in connection with a rating given, or to be given, by it.

        2. In this section and section 83(3),—

          approved rating agency means a rating agency nominated or approved under section 80 of the Banking (Prudential Supervision) Act 1989, section 86 of the Non-bank Deposit Takers Act 2013, or section 62 of the Insurance (Prudential Supervision) Act 2010

            endorsement means a statement that—

            1. may reasonably be regarded as encouraging or persuading persons to acquire the financial products on offer; and
              1. relates to the particular financial products on offer or the particular issuer, rather than to financial products generally or issuers generally

                expert—

                1. means a person who holds himself or herself out to be of a profession or calling that gives authority to a statement made by him or her; but
                  1. does not include a person acting in his or her capacity as a director or senior manager of an entity

                    expert statement means a statement purporting to be made by an expert.

                    Notes
                    • Section 60(3) approved rating agency: amended, on , by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).
                    • Section 60(3) approved rating agency: amended, on , by section 102 of the Non-bank Deposit Takers Act 2013 (2013 No 104).