New Zealand Legislation: Bills
Bills are proposed Acts
(1) Advice means a recommendation, opinion, or guidance that is given in the course of business but does not include a recommendation, an opinion, or guidance given—
(a) by a person whose principal occupation is that of a teacher, journalist, or State services employee, and the advice is given in the course of that person’s principal occupation; or
(b) by a Minister of the Crown in the course of that person’s duties as a Minister of the Crown; or
(c) by a member of Parliament in the course of that person’s duties as a member of Parliament; or
(d) by a chartered accountant in the course of that person’s professional practice as a chartered accountant if the advice is a necessary incident of professional accounting advice; or
(e) by a member of the board of a statutory entity under the Crown Entities Act 2004 in the course of that person’s duties as a member of the board and in accordance with the Crown Entities Act 2004 and the statutory entity’s own Act.
(2) For the avoidance of doubt, the provision of information, whether orally or in writing, is not advice unless it is accompanied by a recommendation, an opinion, or guidance.
(3) Financial advice—
(a) means any advice relating to the financial implications of a financial decision; and
(b) includes information as to the financial advantage or disadvantage of a financial product or a financial decision; but
(c) does not include advice about the procedure for taking or implementing a financial decision; and
(d) does not include any of the following:
(i) a prospectus; or
(ii) an investment statement; or
(iii) an authorised advertisement; or
(iv) a bank disclosure statement; or
(v) a document or documents issued in lieu of a prospectus or investment statement in accordance with an exemption under the Securities Act 1978; or
(vi) a disclosure statement that is required under the Credit Contracts and Consumer Finance Act 2003; and
(e) does not include collecting financial information from a member of the public.
(4) Whether advice is financial advice or not is not affected by—
(a) how the advice is given or communicated; or
(b) whether the advice is specific to a particular person or persons or whether it is given to the public at large, for example, through the media or other promotion.
(5) Financial decision includes any decision made or contemplated by a person in relation to any of the following steps:
(a) saving money:
(b) investing, holding, or realising money or property:
(c) borrowing money:
(d) incurring a debt:
(e) giving a security, including a guarantee or indemnity:
(f) taking out insurance:
(g) making financial provision for the future.