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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Disclosure obligations for certain services provided to retail investors

424: Timing and method of disclosure

You could also call this:

"When you get important investment information and how you receive it"

Illustration for Financial Markets Conduct Act 2013

When you invest money, you need to get some important information. This information is called a disclosure statement and it must be given to you in a certain way. You should get this statement before you give someone permission to manage your investments.

The person or company managing your investments must give you the disclosure statement or send it to your address. They can send it to your home address, or to an email address you have given them. You can also tell them where you want the statement sent.

Sometimes it might not be possible to give you the full disclosure statement right away. If this happens, the person or company managing your investments must give you some basic information as required by section 423. Then, they must give you the rest of the information as soon as they can.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091613.

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Part 6Licensing and other regulation of market services
Disclosure obligations for certain services provided to retail investors

424Timing and method of disclosure

  1. The disclosure statement required by section 423 must be provided in accordance with subsection (2) (unless subsection (3) applies),—

  2. in the case of a discretionary investment management service, before the investment authority is granted by the retail investor; or
    1. in the case of a prescribed intermediary service, at the prescribed time.

      1. The disclosure statement must be given to the retail investor or delivered or sent to the retail investor's last known address or an address (including an electronic address) specified by the investor for that purpose.

      2. If it is not practicable to comply with subsection (1) or (2) by reason of any prescribed circumstance, the licensee or authorised body must, under section 423,—

      3. give the minimum prescribed disclosure statement in accordance with the regulations; and
        1. provide the disclosure statement that would otherwise be required under that section to the retail investor as soon as practicable afterwards.