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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Requirement for certain services to be provided under client agreements

431: Contents, form, and effect of client agreement

You could also call this:

"What a client agreement with an investment company must include and how it works"

Illustration for Financial Markets Conduct Act 2013

When you have a client agreement, it must cover the important things that the regulations say it should. You can think of a client agreement like a contract between you and a company that helps you with investments. The agreement is treated as if it includes all the rules that are part of the Financial Markets Conduct Act 2013, even if they are not written down.

The client agreement must be written down and be in a document that is legally binding between you and the investment company. This means that both you and the company must follow what the document says. The document must be something that a court can enforce if there is a disagreement.

If the client agreement says something that goes against the Financial Markets Conduct Act 2013, then that part of the agreement does not count. This is to make sure that you are protected by the laws that are in place to help keep you safe when you invest your money. The laws are there to help make sure that investment companies treat you fairly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091620.

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430: Need for client agreement, or

"Companies helping you invest must have an agreement with you before they start."

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431A: Overview of financial advice and financial advice services regime, or

"Rules for Giving Advice About Money"

Part 6Licensing and other regulation of market services
Requirement for certain services to be provided under client agreements

431Contents, form, and effect of client agreement

  1. A client agreement required by this subpart must provide adequately for the matters prescribed by the regulations.

  2. The client agreement is treated as containing any provision that is implied into it by or under this Act.

  3. The client agreement must be in writing and be contained in 1 or more documents that are legally enforceable as between the retail investor and the licensee or authorised body.

  4. The client agreement has no effect to the extent that it contravenes, or is inconsistent with, this Act or any term implied into it by or under this Act.