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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Transfer of transferable financial products - Transfer of specified financial products using transfers in prescribed form or containing prescribed information

372: Transfer of specified financial products by products transfer

You could also call this:

"Transferring certain financial products in a special way using a correct form and signature"

Illustration for Financial Markets Conduct Act 2013

When you buy or sell certain financial products, they can be transferred in a special way. This is called a products transfer and it must be done in a certain way, either by using a special form or by including certain information. You must fill it out correctly and sign it in New Zealand.

If you are transferring the products, you must sign the form, but the person getting the products does not have to sign it. However, there is an exception to this rule, if the products make the person getting them responsible for something, then this rule does not apply. An example of this exception is not when the holder of the product promises to protect the issuer from any problems caused by the holder.

When we talk about buying or selling financial products, we are talking about what is called an authorised transaction. This means that the people involved in the transaction are doing it as part of their normal business, and they can be certain types of people, such as a person who trades on a licensed market, a lawyer, or a qualified accountant. It can also be a trustee corporation, which is defined in section 2 of the Protection of Personal and Property Rights Act 1988, a registered bank, or someone who is prescribed for this purpose.

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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=DLM4091539.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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371: Financial products to which this subpart applies, or

"What kinds of money products this law applies to"

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373: Transfer of specified financial products by products transfer and brokers transfer, or

"Transferring financial products: two ways to buy and sell"

Part 5Dealing in financial products on markets
Transfer of transferable financial products: Transfer of specified financial products using transfers in prescribed form or containing prescribed information

372Transfer of specified financial products by products transfer

  1. Specified financial products disposed of in an authorised transaction may be transferred by means of a products transfer that—

  2. either—
    1. is in the form prescribed for the purposes of this section; or
      1. contains the prescribed information; and
      2. is duly completed; and
        1. is executed, in New Zealand, by the transferor (whether or not it is also executed by the transferee).

          1. However, subsection (1) does not apply if the specified financial products impose a liability to the issuer on the transferee.

          2. An indemnity given by the product holder of a financial product to the issuer in respect of any liability of the issuer for the acts, omissions, or obligations of the holder is not a liability for the purpose of subsection (2).

          3. In this subpart, authorised transaction means an acquisition or disposal of financial products in which each of the parties is, or is acting through the agency of, any of the following persons (who are acting in the ordinary course of business):

          4. a person authorised to undertake trading activities on a licensed market:
            1. a lawyer in practice on his or her own account:
              1. a qualified statutory accountant:
                1. a trustee corporation (as defined in section 2 of the Protection of Personal and Property Rights Act 1988):
                  1. a registered bank:
                    1. a person prescribed for the purposes of this definition.

                      Compare
                      • 1991 No 119 s 3
                      Notes
                      • Section 372(2A): inserted, on , by section 72 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                      • Section 372(3)(c): amended, on , by section 17 of the Financial Reporting Amendment Act 2014 (2014 No 64).
                      • Section 372(3)(d): amended, on , by section 161 of the Trusts Act 2019 (2019 No 38).