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Financial Markets Conduct Act 2013

Disclosure of offers of financial products - Ongoing disclosure and updating of registers - Confirmation

100: Issuer or offeror must provide confirmation

You could also call this:

"Sellers must give you proof of what you bought when you purchase a financial product"

Illustration for Financial Markets Conduct Act 2013

When you buy a financial product, the person selling it to you must give you some information. They must give you either the product itself or some confirmation information in certain situations. This information must be given to you in a specific way.

The confirmation information is proof of what you bought, and it can include details like what the product is, its terms and conditions, and your name. You should get this information when you need it, and it helps you know what you have. The person selling the product must follow these rules.

If the person selling the product does not follow these rules, they can get in trouble and have to pay a fine of up to $50,000. This is because not following the rules is considered an offence, and you can read more about it in subpart 5 of Part 8. The rules are in place to help protect you when you buy financial products.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702197.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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99: Defective ongoing disclosure, or

"Telling lies or hiding important information when sharing updates about investments is not allowed"

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101: Part 3 offer provisions, or

"Rules for selling financial products and what happens if you break them"

Part 3Disclosure of offers of financial products
Ongoing disclosure and updating of registers: Confirmation

100Issuer or offeror must provide confirmation

  1. An issuer or offeror of a regulated product must, in the prescribed circumstances, provide to a product holder either the financial product or confirmation information.

  2. The financial product or confirmation information must be provided in the prescribed manner.

  3. Confirmation information provided to a product holder under this section is, in the prescribed circumstances, prima facie evidence of the matters to which it relates.

  4. In this section, confirmation information means the information relating to the financial product or product holder that is prescribed (which may include, for example, information describing the nature, terms, and conditions of the financial product and the name of the product holder).

  5. An issuer or offeror that contravenes this section commits an offence and is liable on conviction to a fine not exceeding $50,000.

  6. The offence in this section is an infringement offence (see subpart 5 of Part 8).

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