Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Enforcement, liability, and appeals - FMA's enforcement powers - Stop orders

464: Meaning of restricted communication

You could also call this:

"What 'restricted communication' means: talking about financial products or services in a way that's controlled by law"

Illustration for Financial Markets Conduct Act 2013

When you hear the term 'restricted communication' in this Act, it means a way of communicating that talks about financial products or services. This can be something that directly or indirectly mentions an offer of financial products, or something that might make you want to apply for these products or services. It can also be something that encourages you to invest more money, and it must be authorised or made by the people offering the products or services, or someone working with them.

This type of communication can be distributed to you in some way. If you see something like this, it is considered a 'restricted communication' under this Act. You should know that when this Act talks about financial products in relation to 'restricted communication', it is referring to the definition of financial products found in section 18.

The term 'restricted communication' also includes any kind of advertisement, so you might see these communications in ads.

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 It might be out of date or be missing some parts.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=DLM4091670.

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

463: Terms of stop order, or

"What a stop order can do to control buying and selling of financial products"

Next

465: FMA may make interim stop order pending exercise of powers, or

"The FMA can make a temporary stop order to protect the public while they decide what to do next."

Part 8Enforcement, liability, and appeals
FMA's enforcement powers: Stop orders

464Meaning of restricted communication

  1. In this Act, restricted communication means a form of communication—

  2. that—
    1. directly or indirectly refers to an offer, or intended offer, of financial products or the supply, or possible supply, of a financial service; or
      1. is reasonably likely to induce persons to apply for financial products or request the supply of a financial service; or
        1. is reasonably likely to induce persons to make further contributions, investments, or deposits referred to in section 11(2)(c); and
        2. that is authorised or instigated by, or on behalf of, the offeror, the issuer, the service provider, or an associated person of the offeror or issuer or service provider or that is prepared with the co-operation of, or by arrangement with, any of those persons; and
          1. that is to be, or has been, distributed to a person.

            1. In this Act, references to a financial product in relation to a restricted communication must be treated as a reference to a financial product as defined in section 18.

            2. In this Act, restricted communication includes any advertisement.