Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

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

78: Issue or transfer void if quotation condition not fulfilled

You could also call this:

"If a seller promises to list a product on a market but doesn't, the sale is not valid."

If you buy financial products and the seller says they will be listed on a market, they must do this within a certain time. This time is either stated in the product disclosure statement or within three months of the statement being made. You are protected if this does not happen.

If the products are not listed on the market within this time, the sale is not valid. The person selling the products must then follow the rules outlined in section 80 to deal with your application. This means they have to take certain steps to fix the situation.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091028.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

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

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

Next

79: Application of section 80, or

"Following rules for fair treatment of financial product applications when things don't go as planned"

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

78Issue or transfer void if quotation condition not fulfilled

  1. This section applies if—

  2. a PDS states or implies that the financial products are to be quoted on a financial market (whether in New Zealand or elsewhere); and
    1. the financial products are not admitted to quotation within—
      1. the period specified in, or determined in accordance with, the PDS; or
        1. if there is no such period, 3 months after the date of the PDS.

        2. An issue or a transfer of financial products under the regulated offer is void.

        3. The offeror must deal under section 80 with the application for financial products that relates to the issue or transfer referred to in subsection (2).