fair-dealing · ss129–138
Fair-dealing provisions (FMC Act Part 2)
The misleading- and deceptive-conduct rules in Part 2 of the Financial Markets Conduct Act 2013. Apply to all financial-product communication regardless of audience or channel.
The fair-dealing provisions in Part 2 of the Financial Markets Conduct Act 2013 (ss129–138) prohibit misleading or deceptive conduct, false representations, and unsubstantiated claims in relation to financial products and services. They apply to any communication with the public, regardless of the channel — PDS, website copy, social media, paid advertising, marketing emails, podcasts, manager media interviews.
Practical consequences for fund communication: claims about returns, fund size, fee competitiveness, or manager performance must be capable of being substantiated; subjective superlatives (for example, "award-winning" or "outperforms the market") require dated, sourced evidence; forward-looking statements must be flagged as such and based on reasonable grounds.
The FMA enforces fair-dealing through warnings, public censures, civil proceedings, and (in serious cases) criminal prosecution. Breach can attract financial penalties under sections 489–490 of the Act. Fair-dealing is the conduct-rule backstop behind much of the discipline you see in NZ retail PIE marketing material.
Primary sources
Related terms
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FMC Act
Financial Markets Conduct Act 2013 (FMC Act)
The principal NZ statute governing the issue, supervision and conduct of managed-investment schemes, securities offers, and financial-product disclosure.
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FMA · Te Mana Tātai Hokohoko
Financial Markets Authority (FMA)
New Zealand's integrated financial-markets conduct regulator. Licenses fund managers, supervisors and financial-advice providers; enforces the Financial Markets Conduct Act; runs the Disclose register.
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PDS
Product Disclosure Statement (PDS)
The headline legal document a NZ managed fund or KiwiSaver scheme provides to retail investors, summarising the fund, fees, risks, and how to invest.