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

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

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When you buy or sell certain financial products in a licensed market, you can transfer them in two ways. You can use a products transfer that has the right information and is completed and signed by the person selling the products in New Zealand. The products transfer must also say what financial products are being sold. You can also use a brokers transfer that has the right information and is completed, and it must say what financial products are being sold. This applies whether or not the financial products mean the buyer has to pay the issuer, and it is part of what is called a licensed market transaction, which is when people who are allowed to trade on a licensed market buy and sell financial products as part of their business, you can find more information about similar laws in the Public Act 1986 No 120.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091541.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

372: Transfer of specified financial products by products transfer, or

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

374: Products transfer does not need to be witnessed, or

"Transferring some financial products doesn't need a witness to sign."

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

373Transfer of specified financial products by products transfer and brokers transfer

Specified financial products sold in a licensed market transaction may be transferred by means of—
a products transfer that—
1. either is in the form prescribed for the purposes of this paragraph or contains the prescribed information; and
2. is duly completed; and
3. is executed, in New Zealand, by the transferor (whether or not it is also executed by the transferee); and
4. specifies financial products that include the financial products sold; and
a brokers transfer that—
1. either is in the form prescribed for the purposes of this paragraph or contains the prescribed information; and
2. is duly completed; and
3. specifies the financial products sold.

Subsection (1) applies whether or not the specified financial products impose a liability to the issuer on the transferee.
In this subpart, licensed market transaction means a sale and purchase of financial products in which each of the parties is, or is acting through the agency of, a person authorised to undertake trading activities on a licensed market who is acting in the ordinary course of that business.

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1991 No 119 s 4