Dated at Wellington this 26th day of July 2005.
The Common Seal of the Securities Commission was affixed in the presence of:
C A N Beyer,
Statement of reasons
This notice comes into force on 1 August 2005 and expires on 31 July 2010. It replaces, with minor amendments, the Securities Act (Canterbury Meat Packers Limited) Exemption Notice 1997.
The notice exempts, subject to conditions, CMP Canterbury Limited (CMP), its related companies, and every person acting on behalf of any or all of them from sections 33(2), 37, 37A, 38A, and 51 to 54B of the Securities Act 1978 and from the Securities Regulations 1983 except regulation 8 in respect of certain debt securities. It also exempts CMP Farmer Nominees Limited and every person acting on its behalf from compliance with the Securities Act (Contributory Mortgage) Regulations 1988 in respect of those debt securities.
The Securities Commission considers that it is appropriate to renew the exemptions because—
CMP is a meat processing company that offers its suppliers security for certain trading obligations in the form of mortgages over properties owned by CMP and its related companies. These arrangements are not intended for traditional purposes of investment, but rather for the protection of farmers who supply CMP and its related companies with livestock. The arrangements are debt securities in terms of the Securities Act 1978. The trustee may also be a contributory mortgage broker by reason of managing the mortgages. In the circumstances, compliance with the disclosure and regulatory requirements of the Securities Act 1978 and the Securities Act (Contributory Mortgage) Regulations 1988 would impose disproportionate costs on CMP, its related companies, and the trustee, compared to any benefit to be gained by suppliers:
the conditions of exemption require CMP and its related companies to keep suppliers and the trustee informed about the level of security available under the mortgages.