Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulation of client money or property services - Obligations for handling client money and client property

431ZG: Restrictions on use of client money and client property

You could also call this:

"Rules for using money and things that belong to your clients"

Illustration for Financial Markets Conduct Act 2013

When you get money or property from a client, you must not use it in any way except if the client tells you to or if you are following the rules in section 431ZC. You can use the client's money to pay it into a trust account, as long as you are doing what section 431ZC says. You must only use the client's money or property as they have directed you, either in general or for a specific purpose.

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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=LMS465988.


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431ZF: Provider must report on client money and client property, or

"Providers must tell clients what's happening with their money and property"


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431ZH: Protection of client money and client property held on trust, or

"Your money and property are safe when someone looks after it for you."

Part 6Licensing and other regulation of market services
Regulation of client money or property services: Obligations for handling client money and client property

431ZGRestrictions on use of client money and client property

  1. A person must not use or apply client money or client property received or held on trust for a client by a provider in any way except—

  2. as expressly directed by the client (either generally or specifically); or
    1. in accordance with section 431ZC (which relates to payment of client money into a trust account).
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      Notes
      • Section 431ZG: inserted, on , by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).