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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulation of client money or property services - Conduct obligations

431Z: Application of conduct obligations

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

When you deal with regulated client money or property services, some rules apply. You need to follow sections 431ZA and 431ZB for all these services. These rules are about how people handle your money or property.

Some other rules, from sections 431ZC to 431ZH, apply to services for retail clients. They also apply to some services provided by a DIMS licensee, as stated in section 446. However, these rules do not apply to brokers under the Insurance Intermediaries Act 1994 for certain money.

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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=LMS465978.

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431Y: False or misleading statements and omissions, or

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

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431ZA: Provider must exercise care, diligence, and skill, or

"Be careful and skilled when looking after someone's money or property"

Part 6Licensing and other regulation of market services
Regulation of client money or property services: Conduct obligations

431ZApplication of conduct obligations

  1. Sections 431ZA and 431ZB apply to all regulated client money or property services.

  2. Sections 431ZC to 431ZH—

  3. apply to regulated client money or property services provided to a retail client; and
    1. apply to custodial and other regulated client money or property services provided to every investor under a retail service of a DIMS licensee (as provided by section 446); and
      1. otherwise apply to client money or property services provided to a wholesale client only if provided by the regulations; and
        1. do not apply to a broker within the meaning of the Insurance Intermediaries Act 1994 in relation to any money to which section 14 or 15 of that Act applies.

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