Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of financial advice and financial advice services - Duties on persons giving regulated financial advice

431L: Duty to exercise care, diligence, and skill

You could also call this:

"Be careful and skilled when giving financial advice, like a prudent person would."

Illustration for Financial Markets Conduct Act 2013

When you give regulated financial advice to someone, you must be careful and skilled. You need to think about what a prudent person would do in the same situation. This means you should exercise the care, diligence, and skill that a prudent person giving regulated financial advice would use.

You can find more information about this by looking at the Financial Markets Conduct Act 2013 and the Financial Services Legislation Amendment Act 2019. This law is important for people who give financial advice. It helps keep people safe when they get financial advice.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS465816.

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431K: Duty to give priority to client’s interests, or

"Put your client's needs first when giving financial advice"

431M: Duty to comply with code of conduct, or

"Follow the rules to give fair financial advice"

Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Duties on persons giving regulated financial advice

431LDuty to exercise care, diligence, and skill

A person who gives regulated financial advice to a client must exercise the care, diligence, and skill that a prudent person engaged in the occupation of giving regulated financial advice would exercise in the same circumstances.

Compare

2008 No 91 s 33

Notes

Section 431L: inserted, on 15 March 2021, by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).