Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulation of client money or property services - Disclosure obligations for services for retail clients

431X: Provider must make disclosure before receiving client money or client property from retail client

You could also call this:

"Tell clients important info before taking their money or things"

Illustration for Financial Markets Conduct Act 2013

If you provide a service that involves handling money or property for a retail client, you must tell the client important information. You must do this before you receive their money or property. If it is not possible to do this before, you must tell them as soon as possible after receiving their money or property. You can find more information about this by looking at the Financial Services Legislation Amendment Act 2019 and the earlier legislation.

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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=LMS465975.

Topics:

Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading

431W: Meaning of client money or property service and certain other terms, or

"What 'client money or property service' means in simple terms"

431Y: False or misleading statements and omissions, or

"Telling the truth: don't give false or misleading information"

Part 6Licensing and other regulation of market services
Regulation of client money or property services: Disclosure obligations for services for retail clients

431XProvider must make disclosure before receiving client money or client property from retail client

A person who provides a regulated client money or property service to a retail client must, in the prescribed manner, disclose the prescribed information to the retail client—
before receiving client money or client property from or on behalf of the client; or
if not practicable before, as soon as practicable after receiving client money or client property from or on behalf of the client.

Compare

2008 No 91 s 77E

Notes

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