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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

69: Waiting period does not usually apply to continuous issue PDSs

You could also call this:

"No waiting time for some financial product information"

When you look at a continuous issue PDS, you usually do not have to wait for a certain period of time. This is because the law says that the waiting period only applies if the Financial Markets Authority (FMA) says so in a notice. The FMA can issue a notice that says which types of continuous issue PDSs have to follow the waiting period rule, as stated in section 65.

The FMA will only issue a notice if they think it is in the best interest of the public. They have to consider whether it is necessary to look at the PDSs before people can buy or transfer financial products. This might happen if there is a particular risk related to a certain type of financial product or the people offering it.

If the FMA does issue a notice, it has to follow certain rules, which are outlined in Subpart 5 of Part 9. You can find more information about how the FMA makes these decisions and what rules they have to follow. The FMA's notices are an important part of how they regulate financial products and protect the public.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091017.

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68: FMA may remove restrictions if its consideration complete or consideration or further consideration unnecessary, or

"The FMA can lift some rules if it's finished checking or doesn't need to check something."

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70: No guarantee or representation as to compliance, or

"No guarantee that financial documents are correct or follow the law"

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

69Waiting period does not usually apply to continuous issue PDSs

  1. Section 65 applies to a continuous issue PDS only if it is of a class that is prescribed by the FMA in a notice issued under this section.

  2. The FMA may issue a notice that prescribes the class or classes of continuous issue PDSs to which section 65 applies.

  3. The FMA must, before issuing a notice in respect of a class of continuous issue PDSs, be satisfied that it is in the public interest for the FMA to have an opportunity to consider those PDSs before any person accepts applications for, or issues or transfers, financial products offered under those PDSs (for example, where in the circumstances, a particular risk relates to a particular class of offerors or financial products).

  4. Subpart 5 of Part 9 (general provisions relating to certain FMA instruments) applies to a notice under this section.

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