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New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Uninvited direct sales

36S: Regulations

You could also call this:

“Rules about financial products and when they don't have to follow all the usual rules”

The Governor-General can make rules about financial products. These rules can say that some agreements don’t have to follow all the usual rules. The rules can also set conditions for these exceptions.

Before the Governor-General can make these rules, the Minister must do some things. The Minister needs to make sure the exceptions are not too big. They must talk to people who will be affected by the rules and listen to what they say. But if the Minister forgets to do these things, the rules can still be valid.

In this law, an agreement for selling a financial product means an agreement that comes from an offer described in section 34(2) of the Financial Markets Conduct Act 2013.

The rules made under this section are called secondary legislation. You can find out how they are published by looking at Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156647.

Topics:
Business > Fair trading
Business > Industry rules
Money and consumer rights > Consumer protection
Money and consumer rights > Banking and loans
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Part 4A Consumer transactions and auctions
Uninvited direct sales

36SRegulations

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister in accordance with subsection (2), make regulations for the following purposes:

  2. exempting classes of agreement for the issue or sale of a financial product from 1 or more provisions of this subpart:
    1. prescribing terms and conditions to which an exemption described in paragraph (a) is subject.

      1. The Minister must not make a recommendation under this section unless—

      2. the Minister is satisfied that the exemption is not broader than is reasonably necessary to address the matters that gave rise to the regulations; and
        1. the Minister has consulted the persons or representatives of the persons that the Minister considers will be substantially affected by any Order in Council made in accordance with the recommendation, and those persons have had the opportunity to comment to the Minister; and
          1. the Minister has considered those comments.

            1. A failure to comply with subsection (2) does not affect the validity of any Order in Council made under this section.

            2. In this section, agreement for the issue or sale of a financial product means an agreement, resulting from an offer described in section 34(2) of the Financial Markets Conduct Act 2013, for the issue or sale of a financial product (within the meaning of that section).

            3. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

            Notes
            • Section 36S: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
            • Section 36S(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).