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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of financial advice and financial advice services - Additional duties on financial advice providers and interposed persons that engage others to give advice

431Q: Persons engaging others to give advice must ensure compliance with duties

You could also call this:

"If you pay someone to give financial advice, you must make sure they follow the rules."

Illustration for Financial Markets Conduct Act 2013

If you give financial advice, you might ask someone else to help you give advice to people. You must make sure this person follows the rules in sections 431I to 431P. You need to take reasonable steps to ensure they comply with these rules. If you ask someone to give advice through another person, that person must also make sure the advisor follows the rules.

If there are people in between you and the person giving advice, like a middle person, they must also ensure the advisor follows the rules in sections 431I to 431P. These middle people are described in section 431E(b). They must take reasonable steps to ensure the advisor complies with the rules.

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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=LMS465825.

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431P: False or misleading statements and omissions, or

"Tell the truth and give all the important details when giving financial advice"

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431R: Duties of persons who engage nominated representatives, or

"Rules for bosses of financial advisors to follow when hiring staff to give advice"

Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Additional duties on financial advice providers and interposed persons that engage others to give advice

431QPersons engaging others to give advice must ensure compliance with duties

  1. A financial advice provider that engages another person (A) to give regulated financial advice must take all reasonable steps to ensure that A complies with sections 431I to 431P.

  2. If A is engaged by the provider indirectly through 1 or more interposed persons (as described in section 431E(b)), each of those interposed persons must also take all reasonable steps to ensure that A complies with sections 431I to 431P.

Notes
  • Section 431Q: inserted, on , by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).