Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Ongoing disclosure and updating of registers - Defective ongoing disclosure

99: Defective ongoing disclosure

You could also call this:

"Telling lies or hiding important information when sharing updates about investments is not allowed"

If you are an issuer, you must not give the Registrar or make available to anyone information under sections 95 to 98 if it contains something that is false or misleading. This information is called ongoing disclosure. You also must not leave out important information that is required by this Act or the regulations. The missing or false information must be important enough to affect an investor's decision.

When you make a statement about something that will happen in the future, it is considered misleading if you do not have a good reason for making it. This rule does not change what is meant by a misleading statement.

You can find more information about what happens if you break this rule by looking at section 511 and section 496.

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 It might be out of date or be missing some parts.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=DLM4091069.

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

98: Issuer must provide information to Registrar, or

"Tell the Registrar about the products you issue"

Next

100: Issuer or offeror must provide confirmation, or

"Sellers must give you proof of what you bought when you purchase a financial product"

Part 3Disclosure of offers of financial products
Ongoing disclosure and updating of registers: Defective ongoing disclosure

99Defective ongoing disclosure

  1. An issuer must not provide to the Registrar, or make available to any person or the public, any information under any of sections 95 to 98 (the ongoing disclosure) if—

  2. there is—
    1. a statement in the ongoing disclosure that is false or misleading or is likely to mislead; or
      1. an omission from the ongoing disclosure of information that is required to be contained in the ongoing disclosure by this Act or the regulations; and
      2. the matter referred to in paragraph (a) is materially adverse from the point of view of an investor.

        1. For the purposes of this section, a statement about a future matter (including the doing of, or refusing to do, an act) must be taken to be misleading if the person making the statement does not have reasonable grounds for making it.

        2. Subsection (2) does not limit the meaning of a reference to a misleading statement.

        3. This section does not limit sections 95 to 98.

        4. See section 511 (offence to knowingly or recklessly contravene this section) and section 496 (which provides that a person may be treated as suffering loss or damage in the case of a contravention of this section).