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FMA consulting on dual language PDS

17 April 2018

The Financial Markets Authority has released a consultation paper on proposals to enable companies offering investments to publish product disclosure statements (PDS) in both te reo Māori and English.

Under the current regulations, companies offering investments are effectively prevented from providing a PDS in more than one language due to prescribed length limits.

"For example, a PDS for an offer of managed investment products in a managed fund must not exceed 6,000 words or 12 pages of A4 paper when printed. These limits were imposed to address issues with disclosure documents prepared under the Securities Act.," the FMA says.

An exemption would exempt issuers from these length limits. To qualify for the exemption, the two languages would need to accurately and fully reflect each other. The length limit would remain in force for the English part of the PDS. A number of other conditions are put forward in the consultation paper to be considered.

The FMA’s consultation also extends to considering whether the exemption should cover a PDS provided in English and any other language.

Submissions on the paper are invited, with a closing date of Thursday, 17 May 2018.

Last updated on the 17th April 2018