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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Procedure for making regulated offers - Disclosure to investors

55: Offeror obligations if notice of withdrawal given

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you give a notice to withdraw from a financial product, except a derivative, the person offering the product must repay your money as soon as possible. If the money is not repaid within a month, the offeror and its directors are responsible for repaying the money with interest from the date the notice was given. You can find more information about this in section 54.

If you give a notice to withdraw from 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 offeror owes money and does not repay it within a month, the offeror and its directors are responsible for repaying the money with interest from the date the notice was given, as explained in section 54.

When parties repay money or property, they can offset the amounts they owe each other.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702187.

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Part 3Disclosure of offers of financial products
Procedure for making regulated offers: Disclosure to investors

55Offeror obligations if notice of withdrawal given

  1. If a notice is given under section 54 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 54 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.