New Zealand Legislation: Bills

29 Financial adviser must not recommend or receive money for acquisition of securities if offer for subscription illegal

• (1) A financial adviser must not recommend to a member of the public that that person acquire securities, and must not receive money from a member of the public in respect of the acquisition of securities, if,—

  • (a) when the securities were or are offered for subscription, the offer was or is illegal; and

  • (b) the illegality has not been remedied; and

  • (c) the financial adviser knows or ought to know that, when the securities were or are offered for subscription, the offer was or is illegal.

  (2) A person who contravenes subsection (1) commits an offence (see section 112).

  Compare: 1988 No 234 s 41S