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Financial Markets Conduct Act 2013

Fair dealing - Offers in course of unsolicited meetings

36: Offeror obligations if notice of withdrawal given

You could also call this:

"What happens if you change your mind about buying a financial product and want your money back?"

Illustration for Financial Markets Conduct Act 2013

If you give a notice to withdraw from an offer for a financial product, except a derivative, the person making the offer must repay your money as soon as possible. If the money is not repaid within a month, the person making the offer and their directors are responsible for repaying the money with interest. The interest is calculated from the date the notice was given, at a rate that has been prescribed.

If you give a notice to withdraw from an offer for a derivative, none of the parties involved have to continue with the derivative. Each party must repay any money or return any property they received as soon as possible. If the person making the offer owes money and does not repay it within a month, they and their directors are responsible for repaying the money with interest, which is calculated from the date the notice was given.

When repaying money for a derivative, you can subtract the amount one party owes from the amount the other party owes, which is called setting off the amounts. This helps to simplify the repayment process.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702182.

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35: Right to withdraw, or

"Get your money back if someone sells you a financial product unfairly"

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37: Director not liable if no misconduct or negligence, or

"Directors are not in trouble if they didn't do anything wrong or careless."

Part 2Fair dealing
Offers in course of unsolicited meetings

36Offeror obligations if notice of withdrawal given

  1. If a notice is given under section 35 in relation to a financial product other than a derivative,—

  2. the offeror must ensure that the relevant money is repaid as soon as practicable; and
    1. if the relevant money is not repaid within 1 month after the notice is given, the offeror and the directors of the offeror are jointly and severally liable to repay the relevant money together with interest at a prescribed rate from the date on which the notice was given.

      1. If a notice is given under section 35 in relation to a derivative,—

      2. no party to the derivative is obliged or entitled to perform it further; and
        1. each party to the derivative must, as soon as practicable, repay any money, or return any other property, received by the party under the derivative to the party from whom it was received; and
          1. if money owed by the offeror is not repaid within 1 month after the notice is given, the offeror and the directors of the offeror are jointly and severally liable to repay the money together with interest at a prescribed rate from the date on which the notice was given.

            1. For the purposes of subsection (2)(b), an amount of money due from one party must be set off against an amount due from the other party.