New Zealand Legislation: Regulations

8 Conditions of exemption in clause 7

• The exemption in clause 7 is subject to the conditions that—

  • (a) the prospectus contains, in the place where the prospective statement of cash flows required by clause 10(1)(c) of Schedule 1 of the Regulations would otherwise be set out,—

    • (i) a prominent statement to the effect that investors should regard investment in Elson Ross as high risk; and

    • (ii) a prominent statement to the effect that the directors of Elson Ross believe that they are unable to provide a meaningful prospective statement of cash flows, and a statement of the directors' reasons for forming that view; and

  • (b) the investment statement contains at the front of the “What returns will I get?” section a prominent statement to the effect that Elson Ross believes that it is unable to reliably predict future returns and that, therefore, investors should rely on their own judgement or on independent advice as to the likely level of returns.