New Zealand Legislation: Regulations
Regulations are laws made under Acts
This notice, which comes into force on the day after the date of its notification in the Gazette,—
substitutes new clause 7(3) and (5) of the Securities Act (New Zealand Deposit Guarantee Scheme) Exemption Notice 2008 (the principal notice); and
substitutes a new clause 10(a) of the principal notice.
Clause 7(3) and (5) of the principal notice provide conditions to the exemptions from regulation 17 of the Securities Regulations 1983 (which relates to restrictions on the distribution of certain advertisements). The conditions have been amended to distinguish between advertisements that are investment statements and advertisements that are not investment statements, and to ensure that the conditions are consistent with other conditions in the principal notice that relate to investment statements.
Clause 10(a) of the principal notice provides an exemption from regulation 7A(4) of the Securities Regulations 1983 (which requires prescribed information to be set out in the investment statement under particular headings) to the extent that the provision requires information about the Crown deposit guarantee scheme to be included in the investment statement under the heading “What returns will I get?”
. The condition of the exemption allows the information that is required about the deposit guarantee scheme to be included as a separate section in the investment statement or in an insert that accompanies the investment statement.
The amendment removes the reference to the particular heading “What returns will I get?”
.
The Securities Commission considers that it is appropriate to amend the principal notice because,—
to ensure the effectiveness of the exemption from regulation 17 of the Securities Regulations 1983, the conditions must provide for advertisements that are investment statements in a manner that is consistent with the other conditions in the principal notice that relate to investment statements; and
some issuers may be of the view that information about the deposit guarantee scheme is relevant under more than just the heading “What returns will I get?”
. To ensure the effectiveness of the exemption from regulation 7A(4) of the Securities Regulations 1983 and the effectiveness of providing information about the scheme by way of an insert, it is desirable that the exemption not specify headings; and
the amended exemption from regulation 7A(4) of the Securities Regulations 1983 is more permissive and, therefore, the Commission is of the view that issuers who have already prepared or changed their investment statements or prepared inserts in reliance on the original exemption are likely to continue to comply with the amended exemption.
