The Financial Markets Authority (FMA) has just released its long awaited Guidance Note on Advertising offers of financial providers under the Financial Markets Conduct Act 2013 (FMC Act). This comes hot on the heels of last week’s direction to Du Val Group NZ Limited and Du Val Capital Partners Limited (Du Val) to remove certain advertising material likely to mislead or deceive investors.
This Financial Law Brief unpacks the Du Val direction to help place the latest FMA guidance in context.
The Du Val direction
The FMA considers statements made by Du Val contravened the ‘fair dealing’ provisions of the FMC Act.
The FMA gave a direction order because it considers certain promotional material Du Val used is likely to mislead or deceive potential investors. The FMA note that the promotional material indicated that:
- the risks associated with investments in their Mortgage Fund Limited Partnership (Partnership) were low. The FMA considers…