Financial Markets Conduct Act 2013

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

428: Miscellaneous provisions relating to false or misleading statements and omissions

You could also call this:

"Telling the truth: rules about making statements that might be false or misleading"

Illustration for Financial Markets Conduct Act 2013

When you make a statement about something that will happen in the future, it must be taken as misleading if you do not have good reasons for making it. This is for the purposes of section 427. You need to have reasonable grounds for what you are saying. This rule does not change what is meant by a misleading statement. Section 427 does not limit what sections 423 to 426A say.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091617.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

427: False or misleading statements and omissions, or

"Telling lies or hiding important information is not allowed"

429: Application of subpart, or

"Rules for people with a licence to provide investment services"

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

428Miscellaneous provisions relating to false or misleading statements and omissions

For the purposes of section 427, a statement about a future matter (including the doing of, or refusing to do, an act) must be taken to be misleading if the person making the statement does not have reasonable grounds for making it.
Subsection (1) does not limit the meaning of a reference to a misleading statement.
Section 427 does not limit sections 423 to 426A.

Notes

Section 428: replaced, on 30 March 2018, by section 77 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).