New Zealand Legislation: Bills

18 Financial adviser must disclose procedures for handling client’s money or other property

• (1) Before handling client money or other client property, a financial adviser must disclose to the client a brief description of the following procedures of the adviser relating to the handling of client money or other client property:

  • (a) how payment or delivery of money or delivery of property should be made to the adviser; and

  • (b) what records will be kept by the adviser in relation to the money or property, whether the client has access to those records, and the terms of that access; and

  • (c) whether or not the handling of client money and property will be audited by an auditor and, if so, the name of the auditor; and

  • (d) any other information that must be disclosed under regulations made under this Act.

  (2) For the purposes of subsection (1)(c), auditor means a person who would, if the financial adviser were an issuer of securities, be a qualified auditor within the meaning of section 2C of the Securities Act 1978.

  Compare: 1988 No 234 s 41I