New Zealand Legislation: Acts

29 No compliance with disclosure obligations if disclosure out of date

• (1) Previous disclosure does not discharge a person’s disclosure obligation if the previous disclosure is out of date when the financial adviser service is performed.

  (2) The previous disclosure is out of date if—

  • (a) since the date of the disclosure there has been a material change in any matter that must be disclosed; and

  • (b) a reasonable person in the position of the person for whom the financial adviser service is performed (A) would consider that the change would materially affect any of the following decisions by A:

    • (i) to proceed with a financial adviser service by the financial adviser in question (B):

    • (ii) to proceed with financial advice already given by B:

    • (iii) about the weight that A gives to financial advice by B:

    • (iv) to postpone or countermand the performance of a financial adviser service.

  (3) Subsection (1) does not apply if—

  • (a) the previous disclosure was by way of a disclosure statement; and

  • (b) before the financial adviser service is performed, B gives A—

    • (i) a new disclosure statement that is up to date; or

    • (ii) additional written information that, when read with the original disclosure statement, updates the disclosure statement.