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Financial Markets Conduct Act 2013

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

382: Regulations concerning unsolicited offers

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The Governor-General can make rules about unsolicited offers for financial products on the Minister's recommendation. You need to know that these rules are made for several purposes, including making sure people who receive unsolicited offers are fully informed about the offer. The Minister must consider preventing unfair practices and consult the Financial Markets Authority when making these recommendations, and you can find more information about the publication requirements for these rules in Part 3 of the Legislation Act 2019. The rules can cover things like the current market price of a financial product, the terms of the offer, and any warnings from the Financial Markets Authority. The Minister also has to think about how to protect people who get unsolicited offers, and make sure they have time to consider the offer before making a decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091556.

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381: Definitions relating to unsolicited offer regulations and related provisions, or

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

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"Rules for dealing with financial offers you didn't ask for"

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

382Regulations concerning unsolicited offers

  1. The Governor-General may, on the recommendation of the Minister in accordance with subsection (3), make regulations setting out the rules applying to unsolicited offers for any or all of the purposes set out in subsection (2).

  2. The purposes are—

  3. ensuring offerees are fully informed of—
    1. the current market price of a quoted financial product or, for a non-quoted financial product, a fair estimate of the value of the non-quoted financial product and the basis for making that estimate; and
      1. the material terms of the offer and their effect; and
        1. any warnings issued by the FMA (if ordered by the FMA to be contained in or to accompany offer documents); and
          1. their rights and remedies under the regulations:
          2. ensuring that notice of an unsolicited offer to product holders is given to the relevant listed issuer or issuer and the FMA:
            1. ensuring that no agreement to transfer may bind offerees for a minimum period for the purpose of enabling offerees to consider, and reconsider, any decision to accept an offer:
              1. requiring a minimum or maximum offer period, or both:
                1. setting out any other rules applying to unsolicited offers.

                  1. In formulating recommendations to make regulations under this section, the Minister must—

                  2. have regard to the objective of preventing unfair practices in the making of unsolicited offers; and
                    1. consult the FMA.

                      1. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

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                      Notes
                      • Section 382(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).