Financial Markets Conduct Act 2013

Dealing in financial products on markets - Insider trading - When prohibition on insider conduct does not apply

247: Exception for disclosure in connection with preparing PDS or limited disclosure document

You could also call this:

"It's okay to share secret information when making documents to sell financial products"

Illustration for Financial Markets Conduct Act 2013

If you are getting ready to sell financial products, you need to make some documents. You have to make a Product Disclosure Statement, or PDS for short, which is a document that tells people about the product you are selling. You might also need to make a limited disclosure document or a register entry.

When you are making these documents, you might need to share some information with others to get help. This is okay, even if the information is usually secret, because you are just using it to make the documents. The rule that normally stops you from sharing secret information, which is explained in section 242, does not apply in this situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091330.


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246: Exception for disclosure required by enactment or rule of law or by FMA, or

"You can share secret information if a law or the FMA says you must."


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248: Exceptions in respect of underwriting agreements, or

"When underwriting agreements are involved, there are exceptions to the rules about using inside information to gain an advantage."

Part 5Dealing in financial products on markets
Insider trading: When prohibition on insider conduct does not apply

247Exception for disclosure in connection with preparing PDS or limited disclosure document

  1. Section 242 does not apply to disclosure that is necessary, in connection with an offer of financial products for sale, in order to assist in the preparation of a PDS, a register entry, or a limited disclosure document for that offer.

Notes
  • Section 247 heading: amended, on , by section 66(1) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
  • Section 247: amended, on , by section 66(2) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).