The prospectus contains detailed information that is not necessarily in the investment statement.

This prospectus includes financial and legal information such as:

  • What the money you invest will be used for.
  • Further details about the people involved in the offer and the benefits they receive.
  • Important commitments the company has, like long-term leases and key contracts.
  • The company's most recent financial information, and in some cases, financial information for the last five years or anticipated financial information for the future.
  • The key points in any trust deed or participation deed. These important documents cover things like how the trustee or statutory supervisor protects investors, financial limits imposed on the trust, and where you'd stand in the line of people waiting to be repaid if the investment went bust.

If a financial adviser recommends the investment, they should have read the prospectus. Ask them to explain the most important points.

You can ask the organisation offering the investment to send a prospectus free of charge. Copies of prospectuses can also be viewed at the Companies Office.

Registered banks do not have to have a prospectus but they must have a general disclosure statement and issue regular key information summaries instead. These documents give investors general information about the bank (including any restrictions placed on it by the Reserve Bank of New Zealand) and give an overview of the bank's financial position.