Financial Markets Conduct Act 2013

41 Eligible investors

(1)

A person (A) is an eligible investor, in relation to a relevant transaction or class of relevant transactions, if—

(a)

A certifies in writing, before the relevant time,—

(i)

as to the matters specified in subclause (2) or (2A) or (3) or (4) (as the case may be); and

(ii)

that A understands the consequences of certifying himself, herself, or itself to be an eligible investor; and

(b)

A states in the certificate the grounds for this certification; and

(c)

a financial adviser, a qualified statutory accountant, or a lawyer signs a written confirmation of the certification in accordance with clause 43.

(2)

In relation to an offer of financial products (or a class of those transactions), A must certify that A has previous experience in acquiring or disposing of financial products that allows A to assess—

(a)

the merits of the transaction or class of transactions (including assessing the value and the risks of the financial products involved); and

(b)

A’s own information needs in relation to the transaction or those transactions; and

(c)

the adequacy of the information provided by any person involved in the transaction or those transactions.

(2A)

In relation to the supply of a financial advice service or a client money or property service (or a class of those services), A must certify that A has previous experience in acquiring or disposing of financial advice products that allows A to assess—

(a)

the merits of the service or services to be provided (including assessing their value and the risks involved); and

(b)

A’s own information needs in relation to the service or services; and

(c)

the adequacy of the information provided by any person involved in the service or services.

(3)

In relation to the supply of a discretionary investment management service (or a class of those services), A must certify that A has previous experience in acquiring or disposing of financial products that allows A to assess—

(a)

the merits of the service or services to be provided (including assessing its value and the risks involved); and

(b)

A’s own information needs in relation to the service or services; and

(c)

the adequacy of the information provided by any person involved in the service or services.

(4)

In relation to any other relevant transaction (or a class of those transactions), A must certify as to A’s experience and other matters prescribed for the purposes of this subclause.

(5)

The certification must specify the offer of financial products, market service, or other relevant transaction or class of relevant transactions to which it applies.

(6)

In relation to the supply of a financial advice service or client money or property service (or a class of those services), the certification under subclause (1)(a)(ii) must include a certificate that A understands that the competency standards and requirements of the code of conduct will not be applicable (if relevant) and that the financial adviser or provider may not be a member of an approved dispute resolution scheme.

Schedule 1 clause 41(1)(a)(i): amended, on 15 March 2021, by section 56(8) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).

Schedule 1 clause 41(1)(c): amended, on 15 March 2021, by section 56(9) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).

Schedule 1 clause 41(1)(c): amended, on 1 July 2015, by section 17 of the Financial Reporting Amendment Act 2014 (2014 No 64).

Schedule 1 clause 41(2A): inserted, on 15 March 2021, by section 56(10) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).

Schedule 1 clause 41(6): inserted, on 15 March 2021, by section 56(11) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).