Important information: The information in this section is required under the Securities Act (Registered Banks Futures Contracts) Exemption Notice 2007.
Decisions to enter into derivative or futures contracts are very important. They often have significant consequences. Read all documents carefully. Ask questions. Seek independent advice before committing yourself.
Choosing a product
When deciding whether to enter into a derivative or futures contract, consider carefully the information under the following headings that can be found on the pages noted below:
[Table of contents to be included here, including headings to assist the reader to identify the information that is disclosed for the purpose of complying with clause 7(1)(e) of the exemption notice]
In addition to the information in this document, important information can be found in the current disclosure statement of [registered bank’s name to be included here] that is published pursuant to the Reserve Bank of New Zealand Act 1989. You are entitled to a copy of that disclosure statement on request.
Financial advisers can help you make financial decisions
Using a financial adviser cannot prevent you from losing money, but it should help you make better decisions about entering into derivative or futures contracts.
Tell the financial adviser what your purpose in entering into derivative or futures contracts is. This is important because different derivative and futures contracts are suitable for different purposes.
A person advising you on derivative or futures contracts should be either—
an entity that is authorised to carry on the business of dealing in futures contracts (authorised futures dealer), including an employee of the authorised futures dealer; or
Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products.
When seeking or receiving advice on derivative or futures contracts, you should check—
the type of adviser you are dealing with:
the services the adviser can provide you with:
the products the adviser can advise you on.
A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. When dealing with an authorised futures dealer, you should ask about these matters. You should also ask your adviser about how he or she is paid and any conflicts of interest he or she may have.
Financial advisers (or the financial service provider they work for) and authorised futures dealers should have a complaints process in place and must also belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over a service that has been provided, you can ask someone who is independent to resolve it.
Most financial advisers (or the financial service provider they work for) and authorised futures dealers must also be registered on the financial service providers register. You can search for information about registered financial service providers at http://www.fspr.govt.nz
You can also complain to the Financial Markets Authority if you have concerns about the behaviour of an authorised futures dealer or a financial adviser.
The Financial Markets Authority regulates conduct in financial markets
The Financial Markets Authority regulates conduct in New Zealand’s financial markets. The Financial Markets Authority’s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets.
For more information about investing and financial advisers, go to http://www.fma.govt.nz