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Financial Markets Conduct Act 2013

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

383: Specific provisions for regulations concerning unsolicited offers

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When you deal with financial products, there are rules to follow. The government can make regulations about unsolicited offers, which are offers you did not ask for. These regulations can say what kinds of offers and products they apply to. They can also explain what "unsolicited" means in this context. The regulations can set rules for making these offers, including what the offers must look like and what information must be included.

The regulations can say what information must be given to you if you receive an unsolicited offer, and to the company that made the offer and the Financial Markets Authority (FMA). They can also outline the FMA's duties in relation to these offers. The regulations can state which provisions are specifically about unsolicited offers.

If you accept an unsolicited offer, the regulations can provide for your right to change your mind or refuse to complete the transfer. They can also set rules for companies that make these offers and protect them from liability in certain situations, as outlined in section 384. The regulations can apply to anyone who helps the company make the offer.

The regulations can prevent people from avoiding these rules, for example by stopping them from asking someone else to make an offer on their behalf. They can also cover what happens when the regulations change, which is called a transitional matter.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091557.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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382: Regulations concerning unsolicited offers, or

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

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384: Protection from liability in connection with unsolicited offer provisions, or

"Protection from blame when you follow the rules about unexpected offers"

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

383Specific provisions for regulations concerning unsolicited offers

  1. The regulations made under section 382 may, without limiting that section,—

  2. define the class or classes of unsolicited offers and financial products to which the regulations apply:
    1. define or clarify the meaning of unsolicited for the purposes of this subpart:
      1. prescribe requirements in relation to unsolicited offers and the making of those offers, including requirements as to the form and content of those offers, variations of those offers, the updating and resending of offer documents or other corrective statements, and the implication of terms into the offer or any resulting agreement:
        1. prescribe the information, statements, certificates, or other documents that must be supplied to offerees, the relevant listed issuer or issuer, and the FMA:
          1. provide for any duties or functions of the FMA in connection with the rules applying to unsolicited offers:
            1. state which provisions are unsolicited offer provisions for the purposes of this Act:
              1. provide for the exercise of a right to withdraw a notification of a decision to accept an unsolicited offer, a right to refuse to complete a transfer, or any other right or remedy of offerees, and any consequences and obligations that apply in those cases:
                1. provide for any powers of, and requirements on, listed issuers, issuers, or their agents in connection with transfers under an unsolicited offer and provide for protections from liability for those persons, persons administering a register of financial products, and other persons for the purposes of section 384:
                  1. provide for the regulations to—
                    1. extend to or apply in respect of any conduct of an associated person of an offeror and any conduct that, in substance or effect, constitutes an unsolicited offer:
                      1. prohibit contracting out of the regulations and include any other provision or provisions designed to prevent avoidance of the regulations (for example, prohibiting persons from inviting others to make an offer to sell a financial product in circumstances in which, if the invitation were an offer to acquire the financial product, it would be an unsolicited offer to which the regulations applied):
                      2. provide for transitional matters.

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