Plain language law

New Zealand law explained for everyone

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

431Y: False or misleading statements and omissions

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When you give information under section 431X, you must make sure it is correct. If the information has a false or misleading statement, or if something important is left out, you must not give it. The statement or omission must be important enough to affect a client's decision. You must have good reasons for making a statement about something that might happen in the future, or it could be considered misleading. If you break this rule, you might be committing an offence, as stated in section 511.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=LMS465976.

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

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

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

Next

431Z: Application of conduct obligations, or

"Rules to follow when handling people's money or property in financial services"

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

431YFalse or misleading statements and omissions

  1. A person must not provide information under section 431X if—

  2. there is—
    1. a statement in the information that is false or misleading or is likely to mislead; or
      1. an omission from the information that is required by the regulations; and
      2. the statement or omission is materially adverse from the point of view of a client.

        1. For the purposes of this section, information about a future matter (including the doing, or not doing, of an act) is misleading if the person making the statement does not have reasonable grounds for making it.

        2. Subsection (2) does not limit the meaning of a reference to a misleading statement.

        3. This section does not limit section 431X.

        4. See section 511 (offence to knowingly or recklessly contravene this section).

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