Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Prohibition of offers where defective disclosure in PDS or register entry

83: Persons who must inform offeror about disclosure deficiencies

You could also call this:

"People who must tell a company about mistakes in its investment information"

If you are involved with a company making a regulated offer, you must tell the company in writing as soon as possible if you find out something is wrong. This could be if a statement in the product disclosure statement or register entry is false, misleading, or leaves out important information that is required by law. You must do this before the end of the application period, which is the time when people can apply for the financial products.

You have to notify the company if you are a director of the company, a proposed director, or a director of the company that issued the product. You also have to notify the company if you are an expert who has given consent for your statement to be used in the product disclosure statement. If you are an expert, you only have to tell the company about problems related to your statement.

The company needs to know about these problems so they can fix them. You must tell them in writing as soon as you find out about the problem.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091034.


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82: False or misleading statements, omissions, and new matters requiring disclosure, or

"Tell the truth when selling financial products"


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84: Expiry, or

"When a Product Disclosure Statement expires or stops being valid"

Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Prohibition of offers where defective disclosure in PDS or register entry

83Persons who must inform offeror about disclosure deficiencies

  1. A person referred to in subsection (2) must, in relation to a regulated offer, notify the offeror in writing as soon as practicable if the person becomes aware at any time before the end of the application period that—

  2. a material statement in the PDS, or the register entry, is false or misleading or is likely to mislead; or
    1. there is a material omission from the PDS, or the register entry, of information that is required to be contained in the PDS, or the register entry, by this Act or the regulations; or
      1. there is a material circumstance that has arisen since the PDS was lodged with the Registrar that would have been required by this Act or the regulations to be disclosed or otherwise contained in the PDS, or the register entry, if it had arisen before the PDS was lodged, and the circumstance is not so disclosed or otherwise contained in the PDS or register entry.
        1. The persons are—

        2. each director of the offeror:
          1. each person named in the PDS or register entry with the person's consent as a proposed director of the offeror:
            1. the issuer (if the offeror is not the issuer) and each director of the issuer:
              1. a person referred to in section 60 who has consented as referred to in that section.
                1. A person referred to in subsection (2)(d) is required to notify the offeror of matters under this section only if the matters relate to the expert statement or endorsement to which the person's consent relates.

                2. In subsection (1), application period means the period in which applications for financial products under the PDS may be made.