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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Expiry

85: How offeror must deal with applications on expiry

You could also call this:

"What happens to your application when a financial product offer ends"

When a product disclosure statement expires, you need to know what happens to your application. If you applied on or before the expiry date, the offeror can still give you the financial products you applied for.

If you applied after the expiry date, the offeror has two options: they can repay the money you gave them for the application, or they can give you a new product disclosure statement and ask you to confirm if you still want the financial products within one month.

If you do not confirm that you still want the financial products within one month, the offeror must repay your money as soon as possible. The offeror and its directors are responsible for repaying your money with interest if it is not repaid within one month.

The offeror must follow any prescribed requirements when dealing with your application under this section, and they must consider rules like those outlined in section 51 and section 50 when deciding what to do with your application.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091038.

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84: Expiry, or

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

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86: Director not liable if no misconduct or negligence, or

"Directors are not in trouble if they did nothing wrong and didn't neglect their job."

Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Expiry

85How offeror must deal with applications on expiry

  1. If a PDS expires, the offeror must deal with applications for the financial products offered under the regulated offer in accordance with subsections (2) and (3).

  2. If an application is received on or before the expiry date, the offeror may issue or transfer financial products to the applicant.

  3. If an application is received after the expiry date, the offeror must do 1 of the following:

  4. ensure that the money received from the applicant in respect of the application is repaid; or
    1. give the applicant—
      1. a new PDS (unless the applicant is not a person to whom disclosure under this Part is required or, under section 51, the offeror does not have to comply with section 50 in respect of the offer to the applicant); and
        1. 1 month to confirm whether or not the applicant still wants to acquire the financial products.

        2. If an applicant does not confirm that the applicant still wants to acquire the financial products within 1 month after being given the opportunity to do so under subsection (3), the offeror must ensure that the money received from the applicant in respect of the application for financial products is repaid as soon as practicable.

        3. If the money referred to in subsection (4) is not repaid within 1 month after the offeror is required to ensure that it is repaid under that subsection, the offeror and the directors of the offeror are jointly and severally liable to repay the money together with interest at a prescribed rate from the expiry of the 1-month period referred to in subsection (4).

        4. An offeror must, when acting under this section, comply with the prescribed requirements (if any).