Securities Act (Friendly Societies) Exemption Notice 2002

  • revoked
  • Securities Act (Friendly Societies) Exemption Notice 2002: revoked, on 1 April 2011, by clause 12 of the Securities Act (Friendly Societies) Exemption Notice 2011 (SR 2011/61).

Reprint
as at 1 April 2011

Coat of Arms of New Zealand

Securities Act (Friendly Societies) Exemption Notice 2002

(SR 2002/291)

  • Securities Act (Friendly Societies) Exemption Notice 2002: revoked, on 1 April 2011, by clause 12 of the Securities Act (Friendly Societies) Exemption Notice 2011 (SR 2011/61).


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This notice is administered by the Securities Commission.


Pursuant to the Securities Act 1978, the Securities Commission gives the following notice.

Notice

1 Title
  • This notice is the Securities Act (Friendly Societies) Exemption Notice 2002.

2 Commencement
  • This notice comes into force on 1 October 2002.

3 Expiry
  • This notice expires on the close of 30 September 2012.

    Clause 3: amended, on 21 September 2007, by clause 3 of the Securities Act (Extension of Term, Amendment, and Revocation of Certain Exemptions) Exemption Notice 2007 (SR 2007/277).

4 Interpretation
5 Exemptions
  • (1) Every friendly society and every person acting on its behalf are exempted from the following in respect of any particpatory securities of which the friendly society is the issuer:

    • (d) clauses 3 and 4 of Schedule 7 of the Regulations; and

    (2) Every friendly society and every person acting on its behalf are exempted from the following in respect of any life insurance policies of which the friendly society is the issuer:

    Clause 5(1)(a): amended, on 21 September 2007, by clause 3 of the Securities Act (Extension of Term, Amendment, and Revocation of Certain Exemptions) Exemption Notice 2007 (SR 2007/277).

6 Statements of securities held
  • The exemption granted by clause 5(1)(b) is subject to the condition that the friendly society sends, or causes to be sent, to each holder of participatory securities of which the friendly society is the issuer, at any time on request and within 1 month of each allotment of a security, a written statement that properly evidences the amount, nature, and ownership of all participatory securities held by the security holder.

7 Profits of friendly society
  • The exemption granted by clause 5(1)(c) is subject to the condition that the registered prospectus relating to the participatory securities contains a brief description of the terms relating to the use or distribution of any profits of the friendly society.

8 Deed of participation
  • The exemption granted by clause 5(1)(d) is subject to the condition that the deed of participation relating to the participatory securities provides—

    • (a) that the friendly society has the following duties:

      • (i) to carry out its obligations under the terms of the offer of participatory securities, the provisions of the Friendly Societies and Credit Unions Act 1982, and the rules of the friendly society registered under that Act; and

      • (ii) to use its best endeavours and skill to ensure that the affairs of the friendly society are conducted in a proper and efficient manner; and

      • (iii) to use due diligence and vigilance in the exercise and performance of its functions, powers, and duties:

    • (b) that the friendly society must, from time to time, at the request of the statutory supervisor or of persons holding not less than one-tenth in number of the participatory securities (or a particular class of the participatory securities), summon a meeting of the holders of those participatory securities (or particular class of participatory securities) for the purpose of giving to the statutory supervisor their opinions or directions in relation to the exercise of its powers:

    • (c) that the statutory supervisor may on its own volition, and must at the request of persons holding not less than one-tenth in number of the participatory securities (or a particular class of the participatory securities), summon a meeting of the holders of the participatory securities (or particular class of participatory securities) for the purpose of giving to the statutory supervisor their opinions or directions in relation to the exercise of its powers:

    • (d) that every meeting summoned under either paragraph (b) or paragraph (c)—

      • (i) must be summoned by sending by post a notice, specifying the time and place of the meeting, to every holder of the participatory securities (or particular class of participatory securities) at that person’s last known address not later than 14 days before the date of the proposed meeting; and

      • (ii) must be chaired by a person nominated by the statutory supervisor or any other person that may be appointed in that behalf by the holders of the participatory securities (or particular class of participatory securities) present at the meeting.

9 Registered prospectus
  • (1) The exemption granted by clause 5(1)(f) is subject to the condition that the registered prospectus relating to the participatory securities contains all of the information, statements, and other matters specified in the following in respect of the friendly society:

    (2) The clauses referred to in subclause (1) must be read as if references to debt securities were references to participatory securities and references to the group were references to the friendly society.

    (3) Subclause (1)(b) does not apply if—

    • (a) the latest financial statements for the friendly society that have been registered under the Financial Reporting Act 1993 contain, or are accompanied by, financial statements for the friendly society containing the information required to be contained in the registered prospectus by clauses 16 to 32 of Schedule 2; and

    • (b) the registered prospectus relating to the participatory securities refers to those latest financial statements and states the most recent accounting period covered by those statements.

10 Audit report
  • (1) The exemption granted by clause 5(1)(g) is subject to the condition that every registered prospectus relating to the participatory securities distributed by, or on behalf of, the friendly society contains a copy of a report by a member of the New Zealand Institute of Chartered Accountants who holds a certificate of public practice and who is qualified for appointment as an auditor of a friendly society under section 63 of the Friendly Societies and Credit Unions Act 1982 signed by that auditor (either in the auditor’s own name or in that of the auditor’s firm), stating—

    • (a) the work done by the auditor; and

    • (b) the scope and limitations of the audit; and

    • (c) the existence of any relationship (other than that of auditor) that the auditor has with, or any interests that the auditor has in, the friendly society; and

    • (d) whether the auditor has obtained all information and explanations that he or she has required; and

    • (e) whether, in the auditor’s opinion, as far as appears from an examination of them, proper accounting records have been kept by the friendly society; and

    • (f) whether or not, in the auditor’s opinion, the financial statements that are required by clauses 16 to 31 of Schedule 2 (as required under clause 9) and that are required to be audited—

      • (i) comply with the Regulations; and

      • (ii) subject to the Regulations, comply with generally accepted accounting practice; and

      • (iii) give a true and fair view of the state of affairs of the friendly society as at the relevant date and of the results and cash flows of the friendly society for the period to which they relate, taking into account information or explanations of the kind referred to in section 14(2) of the Financial Reporting Act 1993 (if any)—

      and, if they do not, the respects in which they do not; and

    • (g) whether the amounts stated under clause 7(2) and (3) of Schedule 2 (as required by clause 9) and clause 10(2) and (3) of Schedule 3 have been taken from audited financial statements, and whether or not the amounts have been correctly taken.

    (2) The exemption granted by clause 5(1)(g) is subject to the further condition that every prospectus relating to the participatory securities delivered to the Registrar for registration under the Act by, or on behalf of, the friendly society has endorsed on it, has attached to it, or is accompanied by—

    • (a) the signed auditor’s report required to be contained in the registered prospectus under clause (1); and

    • (b) a statement, dated not earlier than 7 days before the specified date and signed by the auditor (either in the auditor’s own name or in that of the auditor’s firm), that the auditor consents to the report appearing in the registered prospectus in the form in which it appears.

    (3) If financial statements are referred to in a registered prospectus under clause 9(3), a report under subclause (1) is not required to contain information of the kinds referred to in subclause (1)(a) to (g) to the extent that that information is contained in a report by an auditor (being an auditor of a kind referred to in subclause (1)(a)) that is registered under the Financial Reporting Act 1993.

    Clause 10(1): amended, on 7 July 2010, by section 11 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

11 Terms of life insurance policies
  • The exemption granted by clause 5(2)(b) is subject to the condition that every prospectus relating to life insurance policies of the friendly society delivered to the Registrar for registration under the Act has endorsed on it, has attached to it, or is accompanied by, a statement of all the terms of the life insurance policies to which the prospectus relates, whether those terms are set out in the friendly society’s rules or elsewhere.


Schedule
Friendly societies

cl 4(1)

Independent Order of Odd Fellows of New Zealand Friendly Society

Manchester Unity Friendly Society

The Hibernian Catholic Benefit Society

  • Schedule The Hibernian Catholic Benefit Society: added, on 29 October 2004, by clause 3 of the Securities Act (Friendly Societies) Exemption Amendment Notice 2004 (SR 2004/373).

Dated at Wellington this 17th day of September 2002.

The Common Seal of the Securities Commission was affixed in the presence of:

[Seal]

J Diplock,
Chairperson.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 19 September 2002.


Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)


Notes
1 General
  • This is a reprint of the Securities Act (Friendly Societies) Exemption Notice 2002. The reprint incorporates all the amendments to the notice as at 1 April 2011, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints
  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared
  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989
  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • omission of unnecessary referential words (such as of this section and of this Act)

    • typeface and type size (Times Roman, generally in 11.5 point)

    • layout of provisions, including:

      • indentation

      • position of section headings (eg, the number and heading now appear above the section)

    • format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • format of dates (eg, a date formerly expressed as the 1st day of January 1999 is now expressed as 1 January 1999)

    • position of the date of assent (it now appears on the front page of each Act)

    • punctuation (eg, colons are not used after definitions)

    • Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • case and appearance of letters and words, including:

      • format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • small capital letters in section and subsection references are now capital letters

    • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • running heads (the information that appears at the top of each page)

    • format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)