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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Conditions referred to in PDS

77: Minimum number or amount condition must be fulfilled before issue or transfer

You could also call this:

"Companies must meet certain conditions before they can sell or transfer financial products."

When you read a Product Disclosure Statement, it might say that financial products will not be issued or transferred unless certain conditions are met. You might see that the company needs to receive applications for a minimum number of financial products, or they need to raise a minimum amount of money.

The company cannot issue or transfer any financial products until these conditions are satisfied.

If someone has agreed to buy financial products as an underwriter, they are considered to have applied for those products when working out if the conditions have been met, including those referred to in section 79(2)(a).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091027.

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Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Conditions referred to in PDS

77Minimum number or amount condition must be fulfilled before issue or transfer

  1. This section applies if a PDS states that the financial products will not be issued or transferred unless—

  2. applications for a minimum number of the financial products are received; or
    1. a minimum amount is raised.

      1. The offeror must not issue or transfer any of the financial products under the regulated offer until the condition referred to in subsection (1) is satisfied.

      2. For the purpose of working out whether a condition referred to in this section or section 79(2)(a) has been satisfied, a person who has agreed to acquire financial products as an underwriter is taken to have applied for those products.