Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008

  • expired
  • Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008: expired, on 13 October 2010, by clause 3.

Reprint
as at 13 October 2010

Crest

Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008

(SR 2008/438)

  • Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008: expired, on 13 October 2010, by clause 3.


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 (to which is appended a statement of reasons of the Securities Commission).

Notice

1 Title
  • This notice is the Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008.

2 Commencement
  • This notice comes into force on the day after the date of its notification in the Gazette.

3 Expiry
  • This notice expires on the close of 12 October 2010.

4 Interpretation
  • (1) In this notice, unless the context otherwise requires,—

    Act means the Securities Act 1978

    Crown guarantee means a guarantee given under the deposit guarantee scheme

    deposit guarantee scheme means the New Zealand deposit guarantee scheme announced by or on behalf of the Crown on or about 12 October 2008 relating to guarantees to be given by the Minister of Finance on behalf of the Crown in respect of certain financial institutions under section 65ZD of the Public Finance Act 1989

    eligible collective investment scheme means an arrangement or scheme—

    • (a) that—

      • (i) involves the issue of participatory securities; or

      • (ii) is a unit trust; or

      • (iii) is a superannuation scheme; and

    • (b) that invests only in—

      • (i) debt securities in respect of which the Crown has given a guarantee under the deposit guarantee scheme; or

      • (ii) securities issued by the New Zealand Government and debt securities in respect of which the Crown has given a guarantee under the deposit guarantee scheme

    nominated beneficiary means a person that is a party to a deed of nomination entered into in relation to the deposit guarantee scheme under which the person is designated as a nominated beneficiary for the purposes of deeds of guarantee entered into under the scheme

    prospectus means the registered prospectus relating to the specified securities

    Regulations means the Securities Regulations 1983

    specified security means a security issued in relation to an eligible collective investment scheme.

    (2) Any term or expression that is defined in the Act or the Regulations and used, but not defined, in this notice has the same meaning as in the Act or the Regulations.

5 Exemption from regulation 7A(4) of Regulations in respect of information about deposit guarantee scheme
  • Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of specified securities, from regulation 7A(4) of the Regulations in respect of information that must be disclosed in an investment statement about the deposit guarantee scheme.

6 Condition of exemption in clause 5
  • The exemption in clause 5 is subject to the condition that any investment statement for the specified securities that is distributed after the issuer becomes a nominated beneficiary must contain, or be accompanied by, the following information and statements:

    • (a) a statement in either of the following forms (as is applicable):

      • (i) [name of eligible collective investment scheme] only invests in deposits guaranteed under the New Zealand deposit guarantee scheme:

      • (ii) [name of eligible collective investment scheme] only invests in New Zealand Government securities and deposits guaranteed under the New Zealand deposit guarantee scheme; and

    • (b) a statement to the effect that further information about the deposit guarantee scheme is available, free of charge and at all reasonable times, on the Internet site maintained by, or on behalf of, the Treasury; and

    • (c) a statement to the effect that the most recent audited statement of financial position of the Crown is available, free of charge and at all reasonable times, on the Internet site maintained by, or on behalf of, the Treasury; and

    • (d) any other information or statement that is necessary to avoid misleading or confusing investors about the application of the Crown guarantee (whether in respect of the issuer or any products of the issuer).

7 Exemption from regulation 7A(4) of Regulations in respect of changes in relation to deposit guarantee scheme
  • Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of specified securities, from regulation 7A(4) of the Regulations in respect of information that must be disclosed in an investment statement because of changes to the eligible collective investment scheme or the specified securities that have been or will be made—

    • (a) in connection with the issuer becoming a nominated beneficiary; or

    • (b) to ensure compliance with the deed of nomination under which the issuer was designated as a nominated beneficiary.

8 Condition of exemption in clause 7
  • The exemption in clause 7 is subject to the condition that any investment statement for the specified securities that is distributed after the issuer becomes a nominated beneficiary must contain, or be accompanied by, the information referred to in clause 7.

9 Exemption from regulation 9 of Regulations
  • Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of an advertisement for specified securities that refers to the Crown guarantee, from regulation 9 of the Regulations.

10 Conditions of exemption in clause 9
  • The exemption in clause 9 is subject to the conditions that—

    • (a) the advertisement must comply with regulation 9 of the Regulations in respect of matters other than the reference to the Crown guarantee; and

    • (b) a memorandum of amendments containing amendments required to update the prospectus as a result of the Crown guarantee must be delivered to the Registrar of Companies within 5 working days of the date on which the issuer becomes a nominated beneficiary; and

    • (c) the reference to the Crown guarantee in the advertisement must be in either of the following forms (as is applicable):

      • (i) [name of eligible collective investment scheme] only invests in deposits guaranteed under the New Zealand deposit guarantee scheme:

      • (ii) [name of eligible collective investment scheme] only invests in New Zealand Government securities and deposits guaranteed under the New Zealand deposit guarantee scheme; and

    • (d) in the case of advertisements other than investment statements, any other information contained in the advertisement concerning the Crown guarantee must be limited to—

      • (i) a statement to the effect that further information about the deposit guarantee scheme is available, free of charge and at all reasonable times, on the Internet site maintained by, or on behalf of, the Treasury; and

      • (ii) any other information or statement that is necessary to avoid misleading or confusing investors about the application of the Crown guarantee (whether in respect of the issuer or any products of the issuer); and

    • (e) the advertisement must not contain any information, sound, image, or other matter that is inconsistent with information published about the deposit guarantee scheme on the Internet site maintained by, or on behalf of, the Treasury.

11 Exemptions from regulation 17 of Regulations
  • (1) Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of an advertisement for specified securities that refers to the Crown guarantee, from regulation 17(1) of the Regulations.

    (2) However, the exemption in subclause (1) applies only if either—

    • (a) the only difference between the advertisement and another advertisement in respect of which a certificate that complies with regulation 17(2) of the Regulations has been completed is that reference to the Crown guarantee; or

    • (b) regulation 17(3) of the Regulations would apply if the advertisement did not refer to the Crown guarantee.

    (3) The exemption in subclause (1) is subject to the condition that,—

    • (a) in the case of an advertisement other than an investment statement, the reference to the Crown guarantee complies with the conditions in clause 10(c) to (e):

    • (b) in the case of an advertisement that is an investment statement, the investment statement must contain, or be accompanied by, the information and statements referred to in clause 6.

    (4) Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of an advertisement for specified securities that refers to the Crown guarantee, from regulation 17(2) of the Regulations to the extent that that provision requires certification that the advertisement does not contain any matter that is inconsistent with the registered prospectus referred to in the advertisement.

    (5) The exemption in subclause (4) is subject to the condition that,—

    • (a) in the case of an advertisement other than an investment statement, the certificate that is completed in respect of the advertisement certifies that the reference in the advertisement to the Crown guarantee complies with the conditions in clause 10(c) to (e) and that, in all other respects, the advertisement does not contain any matter that is inconsistent with the prospectus:

    • (b) in the case of an advertisement that is an investment statement, the certificate that is completed in respect of the advertisement certifies that the advertisement contains, or is accompanied by, the information and statements referred to in clause 6 and that, in all other respects, the advertisement does not contain any matter that is inconsistent with the prospectus.

12 Exemptions from material matters disclosure in prospectus
  • Every nominated beneficiary, and every person acting on its behalf, is exempted, in respect of any prospectus that refers to the Crown guarantee, from the following in respect of information that must be disclosed in the prospectus about the deposit guarantee scheme:

    • (a) in the case of an eligible collective investment scheme that involves the issue of participatory securities, clause 36 of Schedule 3 of the Regulations:

    • (b) in the case of an eligible collective investment scheme that is a unit trust, clause 18 of Schedule 3A of the Regulations:

    • (c) in the case of an eligible collective investment scheme that is a superannuation scheme, clause 14 of Schedule 3C of the Regulations.

13 Conditions of exemptions in clause 12
  • The exemptions in clause 12 are subject to the conditions that—

    • (a) the prospectus contains the information and statements referred to in clause 6; and

    • (b) the prospectus must not contain any information, image, or other matter that is inconsistent with information published about the deposit guarantee scheme on the Internet site maintained by, or on behalf of, the Treasury.

Dated at Wellington this 25th day of November 2008.

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

[Seal]

N O Todd,
Member.


Statement of reasons

This notice comes into force on the day after the date of its notification in the Gazette and expires on the close of 12 October 2010.

The notice exempts certain issuers of securities in respect of collective investment schemes from certain provisions of the Securities Regulations 1983, in order to facilitate the operation of the New Zealand deposit guarantee scheme. The notice applies to those issuers that are a party to a deed of nomination entered into with the Crown in relation to the deposit guarantee scheme and under which the issuer is designated as a nominated beneficiary for the purposes of deeds of guarantee.

The Securities Commission considers that the exemptions are appropriate because—

  • the exemptions will give issuers of securities in respect of collective investment schemes similar exemptions to those already in place for issuers of debt securities under the Securities Act (New Zealand Deposit Guarantee Scheme) Exemption Notice 2008; and

  • the New Zealand deposit guarantee scheme has been introduced by the Government to maintain public confidence in New Zealand's financial system and, in particular, in relevant New Zealand financial institutions and certain collective investment schemes that invest in those institutions. Securities law contains specific rules concerning advertising and disclosure of guarantees. The exemptions facilitate prompt and simple disclosure to investors about a participating collective investment scheme's coverage under the scheme; and

  • the exemptions also encourage the delivery of standardised information about the New Zealand deposit guarantee scheme in order to avoid investor confusion about the scheme and its application to participating collective investment schemes. The conditions of the exemptions require issuers to advise investors about the coverage of the collective investment scheme under the deposit guarantee scheme, refer investors to an authoritative source of information about the deposit guarantee scheme, and prevent descriptions of the deposit guarantee scheme that are inconsistent with official descriptions.


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

Date of notification in Gazette: 27 November 2008.


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 (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008. The reprint incorporates all the amendments to the notice as at 13 October 2010, 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)
  • Securities Act (New Zealand Deposit Guarantee Scheme—Collective Investment Schemes) Exemption Notice 2008 (SR 2008/438): clause 3