New Zealand Legislation: Regulations
Regulations are laws made under Acts
The information document referred to in clauses 6 and 7 must contain the following:
(a) a prominent statement at the front of the document in the following form:
“Important Notice
Prospective investors are advised that [name of specified body], in making this offer of securities, is not subject to the normal requirements to have a registered prospectus and an investment statement under the Securities Act 1978. This is because the Securities Commission has granted a general exemption from those requirements to all charitable organisations. The Securities Commission has not examined or approved this particular offer.
Accordingly, the risks associated with this investment may not be as fully disclosed in this document as they would be in an investment statement and registered prospectus.
The Securities Commission granted the general exemption on the basis that prospective investors in charitable organisations are not necessarily seeking a commercial return, but instead wish to support the [charitable/religious] purposes of the charitable organisation. The particular [charitable/religious] purposes of [name of specified body] are discussed in this document.
If the return sought is important to you, you should consider seeking investment advice.”; and
(c) a description of the charitable or religious purposes for which the money paid by subscribers will be used; and
(d) the terms and conditions of the offer of the security; and
(e) any other information that is material to the offer of the security; and
(f) a statement that it is a term of the offer of the debt securities that, on the request of the offeree, the charitable organisation must send, or cause to be sent, without fee and within 5 working days of receiving the request, to that offeree a copy of the most recent audited financial statements of the organisation that comply with the Financial Reporting Act 1993.
