Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

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

426: Disclosure statement

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When you get a disclosure statement, it might be combined with other statements as outlined in section 423 or the Banking (Prudential Supervision) Act 1989, but there are some exceptions. You will know it is a disclosure statement because it has certain information. It must be in writing and include the date it was prepared.

The statement must also have the name and contact details of the person or organisation providing the service. It needs to contain all the information required by the regulations and be accompanied by the necessary documents. The statement must comply with the regulations about what it should look like and how it should be presented.

There is one exception to these rules, which is the minimum prescribed disclosure statement mentioned in section 424(3)(a). This exception means that not all the usual rules apply to this particular type of statement. The regulations still apply to the form and presentation of the disclosure statement.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091615.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

425: Purpose of disclosure statement, or

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

Next

426A: Further prescribed information to be made available, or

"Sharing important information when asked or at certain times"

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

426Disclosure statement

  1. A disclosure statement may be combined with other disclosure statements under section 423 (and may be combined with other disclosure statements under this Act or the Banking (Prudential Supervision) Act 1989) except in the prescribed circumstances.

  2. A disclosure statement must—

  3. be in writing; and
    1. state the date as at which the disclosure statement is prepared; and
      1. state the name and contact details of the licensee or authorised body providing the service; and
        1. contain all of the information that it is required to contain by the regulations; and
          1. be accompanied by all the documents that the regulations require it to be accompanied by; and
            1. comply with all other requirements of the regulations relating to the content of the disclosure statement.

              1. The disclosure statement must comply with all requirements of the regulations relating to the form and presentation of the statement.

              2. Subsection (2) does not apply to the minimum prescribed disclosure statement referred to in section 424(3)(a).

              Notes
              • Section 426(1): amended, on , by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).
              • Section 426(1): amended, on , by section 28 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).