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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Other provisions relating to lodging of PDS and other documents

65: Waiting period after lodgement before processing applications for financial products

You could also call this:

"Companies must wait before accepting your application to buy a financial product"

When you want to buy a financial product, the company selling it must wait a certain time before they can accept your application. They must wait 5 working days after they lodge the product disclosure statement, or a longer time if it is extended under section 66. If they do not wait, they can get in trouble.

If the company breaks this rule, they can be fined up to $50,000. This is considered a serious offence, and you can read more about it in subpart 5 of Part 8. The company can still get your application during this time, but they cannot process it until the waiting time is over.

The waiting time is in place to help protect you when you buy financial products. You should be aware that companies must follow this rule to ensure everything is done fairly. Companies that sell financial products must follow the rules, including waiting the required time before processing applications.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091013.

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"Registrar must tell the Financial Markets Authority when a company's investment information is lodged"

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66: FMA may extend period, or

"The law boss can give you more time to do something, and they will tell you in writing."

Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Other provisions relating to lodging of PDS and other documents

65Waiting period after lodgement before processing applications for financial products

  1. An offeror must not accept an application for, or issue or transfer, financial products offered under a regulated offer until—

  2. the period of 5 working days after lodgement of the PDS has ended; or
    1. if the period is extended under section 66, the period as extended has ended.

      1. An offeror that contravenes this section commits an offence and is liable on conviction to a fine not exceeding $50,000.

      2. The offence in this section is an infringement offence (see subpart 5 of Part 8).

      3. This section does not prevent an offeror from receiving applications for financial products or money during the period that applies under this section.

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