Dated at Wellington this 6th day of August 2002.
The Common Seal of the Securities Commission was affixed in the presence of:
This note is not part of the notice, but is intended to indicate its general effect.
This notice, which comes into force on the day after the date of its notification in the Gazette, amends the Securities Act (Australian Registered Managed Investment Schemes) Exemption Notice 1999 (the principal notice). The amendment is required as a result of the coming into effect on 11 March 2002 of the Financial Services Reform Act 2001 (the AFSRA), which amended provisions of the Australian Corporations Act 2001 and the Australian Corporations Regulations 2001 (the ACR). One of the amendments in the AFSRA was the introduction of a mandatory cooling-off regime for members of the public subscribing for financial products. This gives investors the right to return the financial products they have purchased and to have their subscription money repaid within 14 days.
Unlike Australian law, there is no mandatory requirement for offers of securities to the public in New Zealand to be made subject to a cooling-off period. However, when an offer is made with a cooling-off period, clause 6 of Schedule 3D of the Securities Regulations 1983 (the Regulations) requires that the investment statement for the offer must contain
“a statement of the terms on which a subscriber may cancel the securities”. Under the principal notice an offer of Australian particpatory securities in New Zealand must be made on the same terms and conditions applying to the relevant Australian prospectus, which now includes a mandatory cooling-off period subject to the transitional provision relating to offers before 11 March 2002. The effect of this is that issuers are now required to include details of the cooling-off period in their New Zealand investment statements.
The effect of this notice is to provide a transitional regime for offers made before 11 March 2002 that is similar to that provided by the Australian legislation. Issuers of Australian particpatory securities in New Zealand that comply with the transitional regime set out in the ACR (as amended) are exempted from complying with clause 6 of Schedule 3D of the Regulations. However, instead of the 14-day cooling-off period provided for in the ACR, New Zealand investors get a 21-day cooling-off period.