New Zealand Legislation: Bills

23 No compliance with disclosure obligations if disclosure statement out of date

• (1) A financial adviser who has previously given a member of the public a disclosure statement does not comply with the disclosure obligations under this Part if the disclosure statement is out of date when the financial adviser performs a financial adviser service for that person.

  (2) The disclosure statement is out of date if—

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

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

    • (i) to proceed with a financial adviser service to be performed by that adviser:

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

    • (iii) about the weight that the person gives to financial advice by that adviser:

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

  (3) Subsection (1) does not apply if, before the financial adviser service is performed, the financial adviser gives the person concerned—

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

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

  Compare: 1988 No 234 s 41M