06 July 2022

Consultation: Proposed guidance on reasonable grounds for financial advice about IPOs and listed equity securities

Final date for submissions

5 August 2022

Consultation document

Proposed guidance on reasonable grounds for financial advice about IPOs and listed equity securities

Submission form

Download the feedback form

Email for submission

[email protected] - please use the title of the consultation paper in the subject line

We are consulting on proposed guidance that explains the FMA’s approach to applying and enforcing Code Standard 3 of the Code of Professional Conduct for Financial Advice Services, in relation to financial advice about Initial Public Offerings (IPOs) and listed equity securities.

Code Standard 3 requires people who give regulated financial advice to retail clients to ensure that the financial advice given is suitable for the client, having regard to the nature and scope of the financial advice. The commentary to the standard explains that ensuring financial advice is suitable for the client should include having reasonable grounds for the financial advice.

We have focused on advice about IPOs and listed equity securities because it can be difficult to access expert research for these, particularly for smaller market capitalisation companies.