Dated at Wellington this 16th day of November 2004.
The Common Seal of the Securities Commission was affixed in the presence of:
Statement of reasons
This notice, which comes into force on the day after the date of its notification in the Gazette, extends the Securities Act (Employer Superannuation Schemes) Exemption Notice 2004 (the
“principal notice”) so that the principal notice can continue to apply in a business for 12 months after the business is disposed of by an employer who is a promoter of an employer superannuation scheme or an associated person of that promoter. Examples of how the principal notice can continue to apply are, in general terms, that—
if a parent company disposes of a business operated by its subsidiary by way of share sale, for 12 months afterwards the former subsidiary can continue to offer, to employees in the business, interests in a superannuation scheme that was promoted by its former parent company:
if a company disposes of a business by way of an asset sale, for 12 months afterwards the new owner of the business can continue to offer, to employees in the business, interests in a superannuation scheme that was promoted by its predecessor.
The extension of the principal exemption is subject to the same conditions as the conditions that currently apply.
This notice does not extend the class exemption in respect of small employer superannuation schemes.
The Securities Commission considers that it is appropriate to grant the exemptions because—
a policy intention of the statutory exemption in section 5A of the Securities Act 1978 is to encourage employer-sponsored superannuation schemes. It is consistent with this policy also to encourage continuity of superannuation arrangements for employees. This amendment notice achieves those objectives by allowing a business that is disposed of by an employer who is a participant in an employer superannuation scheme to continue to use the exemption in the principal notice for a transitional period while the business sets up its own superannuation scheme:
by limiting the extension to employers that operate businesses that were formerly operated by the employer disposing of the business or an associated person of the disposing employer, the exemptions in the principal notice will not apply to superannuation schemes offered by financial institutions under which any number of unrelated employers may provide superannuation benefits for their employees:
limiting the application of the extension to a transitional period of 12 months will allow for continuity of membership in employer superannuation schemes while encouraging new employers to develop and offer their own schemes rather than seeking to rely on continued provision of a scheme promoted by a previous employer.
Date of notification in Gazette: 18 November 2004.
This notice is administered by the Securities Commission.