This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 17 June 2014, exempt certain classes of agreements for the issue or sale of financial products from the uninvited direct sales provisions in subpart 2 of Part 4A of the Fair Trading Act 1986. The uninvited direct sales provisions also come into force on 17 June 2014 and replace the provisions of the Door to Door Sales Act 1967.
The exemptions are based on similar exemptions in section 34 of the Financial Markets Conduct Act 2013 (which prohibits offers of financial products in the course of unsolicited meetings with consumers). The exemptions apply in relation to—
offers to wholesale investors (for example, investment businesses or large entities):
offers to investors who are close business associates of the offeror or are relatives of the offeror:
offers through a licensee for a discretionary investment management service:
offers under employee share purchase schemes or dividend reinvestment plans:
offers to persons who are under the control of wholesale investors or certain other persons who do not require disclosure under that Act:
offers through financial advisers (who are required to comply with obligations under the Financial Advisers Act 2008):
offers of standard banking products by a registered bank or a subsidiary of a registered bank.
Regulatory impact statement
The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 4 June 2014 to help inform the decisions taken by the Government relating to the contents of this legislative instrument.
A copy of this regulatory impact statement can be found at—
Date of notification in Gazette: 12 June 2014.
These regulations are administered by the Ministry of Business, Innovation, and Employment.