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Financial Markets Conduct Act 2013

Fair dealing - Offers in course of unsolicited meetings

34: Prohibition of offers in course of unsolicited meetings with persons acting otherwise than in trade

You could also call this:

"No one can try to sell you financial products during an unexpected meeting if you're not in business."

Illustration for Financial Markets Conduct Act 2013

If you are not in business, you must not be offered financial products during an unsolicited meeting. This means you should not be asked to buy financial products when you have not asked to meet with someone about them. An unsolicited meeting can be in person, over the phone, or through audio, audio and visual, or electronic communication where you can talk to each other at the same time.

There are some exceptions to this rule, such as when the offer does not need to follow certain disclosure rules under Part 3 because of exclusions under Part 1 of Schedule 1, or when the offer is made by a financial advice provider who is doing their normal business. You can also be offered financial products if they are from a co-operative and you need to buy them to do business with the co-operative, or if buying them is how you become a member of the co-operative.

This rule applies to you if you are in New Zealand, no matter where the financial products come from or where the person offering them is located. A meeting can be a face-to-face conversation, a phone call, or a conversation using audio, audio and visual, or electronic communication where you can talk to each other at the same time. A co-operative can be a co-operative company, an industrial and provident society, or another type of entity that is prescribed.

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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=DLM4702174.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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Part 2Fair dealing
Offers in course of unsolicited meetings

34Prohibition of offers in course of unsolicited meetings with persons acting otherwise than in trade

  1. A person must not offer financial products for issue or sale to a person who is acting otherwise than in trade (A) in the course of, or because of, an unsolicited meeting with A.

  2. Subsection (1) does not prohibit an offer of financial products if—

  3. the offer does not require disclosure under Part 3 because of an exclusion under Part 1 of Schedule 1 (other than an exclusion under clause 12 or 16 of that schedule); or
    1. the offer is through a financial advice provider that is acting in the ordinary course of business as a financial advice provider; or
        1. the offer is an offer of the financial products of a co-operative where becoming a holder of those products is—
          1. a necessary incident of doing business with the co-operative; or
            1. the means by which a person can access the benefits of membership of the co-operative; or
            2. the offer is made in the prescribed circumstances.

              1. This section applies to offers of financial products received by persons in New Zealand, regardless of—

              2. where any resulting issue or transfer occurs:
                1. where the issuer or offeror is resident, incorporated, or carries on business.

                  1. In this section,—

                    meeting includes—

                    1. a telephone call; or
                      1. a meeting held by means of audio, audio and visual, or electronic communication where the participants can simultaneously communicate with each other throughout the meeting

                        co-operative means—

                        1. a co-operative company; or
                          1. an industrial and provident society; or
                            1. an entity of a prescribed kind.

                            Notes
                            • Section 34(2)(b): replaced, on , by section 11 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                            • Section 34(2)(c): repealed, on , by section 11 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).