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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Advertising

91: Advertising before PDS lodged

You could also call this:

"Advertising a financial product before paperwork is complete: what you can and can't say"

If you want to advertise a financial product before all the paperwork is done, you need to follow some rules. You can advertise before the Product Disclosure Statement is lodged with the Registrar if your ad says that you are not currently asking for money and that people cannot currently apply for or buy the product. Your ad must also say that if you do make an offer, it will be done according to the law, as stated in section 89. You can say in your ad that you are looking for people to show interest in your product, but you must explain how they can do this and make it clear that showing interest does not mean they have to buy the product. When you include these statements in your ad, they must be easy to see and notice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091055.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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90: Distribution of PDS or registered documents, or

"Sharing important documents with people, like Product Disclosure Statements, in a way that's allowed by law"

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92: Advertising after PDS lodged, or

"Advertising rules after a financial product's information is lodged"

Part 3Disclosure of offers of financial products
Advertising

91Advertising before PDS lodged

  1. Before the PDS is lodged with the Registrar, an advertisement does not contravene section 89 if it includes, in relation to the offer or intended offer, a statement—

  2. that no money is currently being sought; and
    1. that financial products cannot currently be applied for or acquired under the offer or intended offer; and
      1. that, if the offer is made, the offer will be made in accordance with this Act; and
        1. if the offeror wishes, that specifies that the offeror is seeking preliminary indications of interest and, in that case, also specifies—
          1. how indications of interest may be made; and
            1. that no indication of interest will involve an obligation or a commitment to acquire the financial products.

            2. A statement required under subsection (1)(a) to (c) and (d)(ii) must be reasonably prominent.

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