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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

425: Purpose of disclosure statement

You could also call this:

"What you need to know before choosing a financial service"

Illustration for Financial Markets Conduct Act 2013

The purpose of a disclosure statement is to give you information that helps you decide if you want to use a service from a licensee or authorised body. You can use this information to choose whether to start or keep using the service. The information also helps you decide if you want to change how you use the service, like changing the instructions you gave the licensee or authorised body, as outlined in section 423.

You get this information so you can make good choices about the service you are using. The disclosure statement is meant to help you with your decisions about the service. It is related to the rules in section 423.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091614.

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424: Timing and method of disclosure, or

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

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426: Disclosure statement, or

"A 'Disclosure statement' is a written document with important information about a service, including who is providing it and when."

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

425Purpose of disclosure statement

  1. The purpose of a disclosure statement under section 423 is to provide certain information that is likely to assist a retail investor to decide—

  2. whether or not to proceed, or continue to proceed, with the service by the licensee or authorised body in question; or
    1. to change any instruction in relation to the provision of that service by the licensee or authorised body.