This note is not part of the notice, but is intended to indicate its general effect.
This notice comes into force on the day after the date of its notification in the Gazette.
It applies to participatory securities in the form of membership of an incorporated society that confers ownership rights and rights to use communal facilities in a residential development. The notice applies where communal facilities are either—
The effect of the notice is that both the developer and the society are exempted from the following provisions of the Securities Act 1978:
•sections 33, 37, and 37A, which contain the prospectus and investment statement requirements of the Act
•section 38A, which relates to statements in advertisements by experts
•section 53E(2), which requires that an issuer of participatory securities ensure that the financial statements of the scheme are audited annually by an auditor if required to do so by the statutory supervisor
•section 54, which relates to certification of securities
•section 54B(3), which requires that an issuer send copies of certain documents to securities holders on request.
This notice replaces the Securities Act (Residential Property Developments) Exemption Notice 1997, which applied only where the society owns, as distinct from leases, the communal facilities of a residential development.