Financial Markets Conduct Act 2013

Exclusion for persons in close relationship

4 Offers to close business associates

(1)

An offer of financial products to a close business associate of the offeror does not require disclosure under Part 3 of this Act.

(2)

A person (A) is a close business associate of the offeror if—

(a)

A is a director or senior manager of the offeror or of a related body corporate of the offeror; or

(b)

A holds or controls 5% or more of the voting products of the offeror; or

(c)

A is a related body corporate of the offeror; or

(d)

A holds or controls 20% or more of the voting products of a related body corporate of the offeror; or

(e)

A is a partner of the offeror or of a director of the offeror (under the Partnership Act 1908); or

(f)

A is a spouse, civil union partner, or de facto partner of a person who is a close business associate of the offeror under any of paragraphs (a) to (e) or subclause (3); or

(g)

A is a child, parent, brother, or sister of a person who is a close business associate of the offeror under any of paragraphs (a) to (f) or subclause (3) (whether or not by a step relationship).

(3)

A person (A) is also a close business associate of the offeror, in relation to an offer of financial products, if A has a close professional or business relationship with the offeror, or a director or senior manager of the offeror, that allows A to—

(a)

assess the merits of the offer; or

(b)

obtain information from the offeror or any other person involved in the offer that will enable A to assess the merits of the offer.

(4)

In this clause, control, in relation to a voting product, means having, directly or indirectly, effective control of the voting rights attached to the product.