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

61: PDS must be worded and presented in clear, concise, and effective manner

You could also call this:

"Make your Product Disclosure Statement easy to understand"

When you prepare a Product Disclosure Statement, or PDS, you must make sure the information in it is easy to understand. You need to word and present the information in a clear, concise, and effective way. This means you should explain things simply and get your point across quickly.

If you are required to prepare a PDS, you have to follow this rule. The Financial Markets Authority, or FMA, can take action if your PDS does not comply with this rule, as outlined in subpart 1 of Part 8.

You should know that this rule is not about civil liability, but it is still important to follow it, and you can find more information about civil liability in subpart 3 of Part 8.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091008.

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60: Consent of experts and persons who make endorsements, or

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

62: PDS must comply with prescribed requirements relating to form and presentation, or

"A Product Disclosure Statement must follow the rules about what it looks like and what's in it."

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

61PDS must be worded and presented in clear, concise, and effective manner

An issuer that prepares, or is required to prepare, a PDS must ensure that the information in the PDS is worded and presented in a clear, concise, and effective manner.
This section is not a civil liability provision for the purposes of subpart 3 of Part 8 (but see subpart 1 of Part 8, which allows the FMA to make a stop order if a PDS does not comply with this section).