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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Unsolicited offers to purchase financial products off-market

381: Definitions relating to unsolicited offer regulations and related provisions

You could also call this:

"What 'unsolicited offer' means in finance and law"

Illustration for Financial Markets Conduct Act 2013

When you hear the term unsolicited offer, it means someone is making an offer to buy a financial product from you without you asking them to. This offer is to buy a financial product, or to get the power to sell a financial product, or to get some other interest in a financial product. The offer must meet certain conditions to be called an unsolicited offer.

You need to know the offer is unsolicited, meaning you did not ask for it, and it is not made on a licensed market. The offer must also be the type that the regulations apply to, and it cannot be a takeover offer for a financial product under the Takeovers Code or an acquisition by a company of its shares under the Companies Act 1993. When someone makes an offer, it includes inviting or proposing to make an offer, not just actually making one.

When someone makes an offer, it can be them or someone associated with them making the offer. This is important to understand when dealing with financial products and markets. You should be aware of what an unsolicited offer is and how it works.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091553.

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380: Effect of this Act on other enactments, or

"This law overrides other laws when they disagree, and you must follow its rules and orders."

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382: Regulations concerning unsolicited offers, or

"Rules to protect people from unexpected offers to buy or sell financial products"

Part 5Dealing in financial products on markets
Unsolicited offers to purchase financial products off-market

381Definitions relating to unsolicited offer regulations and related provisions

  1. For the purposes of this Act, an unsolicited offer means an offer to which all of the following apply:

  2. the offer is to acquire a financial product, to acquire a power to dispose of a financial product, or to acquire another interest in or right attaching to a financial product, made by a person (A) to another person (B) (whether the acquisition is by A or an associated person of A):
    1. the offer is unsolicited by B:
      1. the offer is not made on a licensed market:
        1. the offer is within the class or classes of unsolicited offers to which the regulations apply:
          1. the offer is not a takeover offer for a financial product under the Takeovers Code nor an acquisition or a redemption by a company of its shares under the Companies Act 1993.

            1. For the purposes of this subpart, and any regulations made under this subpart, an offer made by A includes an invitation or a proposal for A (or an associated person of A) to make an offer.

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