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Fair Trading Act 1986

Miscellaneous provisions

48R: Unsubstantiated representations prohibition does not apply to financial markets disclosure

You could also call this:

“The rule about proving claims doesn't apply to special financial papers”

This law talks about a special rule for financial documents. You don’t have to prove every statement in certain financial papers. This rule applies to ‘disclosure documents’ and ‘register entries’. These are special types of documents used in financial markets.

The law says that the part of the Fair Trading Act that usually requires people to back up their claims doesn’t apply to these financial documents. This means that the people who write these documents don’t have to prove every statement they make.

The terms ‘disclosure document’ and ‘register entry’ have specific meanings. These meanings are explained in another law called the Financial Markets Conduct Act 2013. If you want to know exactly what these terms mean, you would need to look at that law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6033259.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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48Q: No pecuniary penalty and fine for same conduct involving financial products or financial services, or

“You can't be fined twice for the same mistake with money stuff”

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48S: Certain conduct under Financial Markets Conduct Act 2013 does not contravene various provisions of this Act, or

“Some actions allowed by financial market rules don't break fair trading rules”

Part 6 Miscellaneous provisions

48RUnsubstantiated representations prohibition does not apply to financial markets disclosure

  1. The provision of this Act that corresponds to section 23 of the Financial Markets Conduct Act 2013 does not apply to a representation made in a disclosure document or a register entry.

  2. In this section, disclosure document and register entry have the same meanings as in section 6(1) of the Financial Markets Conduct Act 2013.

Notes
  • Section 48R: inserted, on , by section 8 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).