Securities Act (Kingdom Resources Trust) Exemption Notice 2009

  • expired
  • Securities Act (Kingdom Resources Trust) Exemption Notice 2009: expired, on 1 December 2012, by clause 3.

Reprint
as at 1 December 2012

Coat of Arms of New Zealand

Securities Act (Kingdom Resources Trust) Exemption Notice 2009

(SR 2009/198)

  • Securities Act (Kingdom Resources Trust) Exemption Notice 2009: expired, on 1 December 2012, 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 Financial Markets Authority.


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 (Kingdom Resources Trust) Exemption Notice 2009.

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 30 November 2012.

4 Interpretation
5 Exemptions for debt securities
  • The trust and every person acting on its behalf are exempted from sections 33(2), 37, and 37A of the Act and regulation 17 of the Regulations in respect of any debt securities issued by the trust.

6 Conditions
  • (1) The exemptions in clause 5 are subject to the conditions that—

    • (a) every subscriber for a debt security issued by the trust must receive, before subscribing for the security, an information document relating to the security that contains the information set out in clause 7; and

    • (b) at the time of the offer of a debt security to be issued by the trust, the aggregate amount of all the principal sums outstanding must not exceed $2,000,000; and

    • (c) the trust must not allot a debt security if, at the time of the completion of the allotment, the aggregate amount of the last 12 months' principal sums outstanding would exceed $1,500,000; and

    • (d) no interest is payable in respect of a debt security issued by the trust.

    (2) In subclause (1)(b), the aggregate amount of all the principal sums outstanding is the amount that is owing by the trust, or any associated person of the trust, in respect of all debt securities (not being excluded securities) that were allotted, at any time, by the trust or by any associated person of the trust.

    (3) In subclause (1)(c), the aggregate amount of the last 12 months' principal sums outstanding is the amount that is owing by the trust, or any associated person of the trust, in respect of all debt securities (not being excluded securities) that were allotted, during the 12-month period ending immediately after the proposed allotment, by the trust or by any associated person of the trust.

7 Information document
  • The information document referred to in clause 6(1)(a) must contain the following:

    • (a) a prominent statement at the front of the document in the following form:

      Important Notice

      Prospective depositors are advised that The Kingdom Resources Trust, in making this offer of securities, is not subject to the normal requirements to have a registered prospectus and an investment statement under the Securities Act 1978.

      This is because the Securities Commission has granted an exemption from those requirements to The Kingdom Resources Trust. The Securities Commission has not examined or approved this offer. The risks associated with this offer may not be as fully disclosed in this document as they would be in an investment statement and registered prospectus.

      The Securities Commission has granted this exemption on the basis that persons depositing funds with The Kingdom Resources Trust will not earn interest on their deposit, but instead wish to support the charitable purposes of The Kingdom Resources Trust. The particular purposes of The Kingdom Resources Trust are discussed in this document.

      If earning interest is important to you, you should consider seeking investment advice.; and

    • (b) the information required by clauses 2, 9, 10, 11, and 12 of Schedule 3D of the Regulations; and

    • (c) a description of the charitable purposes for which the money paid by subscribers will be used; and

    • (d) the terms and conditions of the offer of the security; and

    • (e) any other information that is material to the offer of the security; and

    • (f) a statement that it is a term of the offer of the debt securities that, on the request of the offeree, the trust must send, or cause to be sent, without fee and within 5 working days of receiving the request, to that offeree a copy of the most recent audited financial statements of the trust that comply with the Financial Reporting Act 1993.

Dated at Wellington this 14th day of July 2009.

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

[Seal]

J Diplock,
Chairperson.


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 30 November 2012. It exempts The Kingdom Resources Trust (the trust), subject to conditions, from provisions of the Securities Act 1978 and the Securities Regulations 1983 in connection with the issue of debt securities by the trust.

The exemptions and the conditions on which they are granted are similar to those contained in the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003 (the class notice) and the previous exemptions granted to the trust under the Securities Act (Kingdom Resources Trust) Exemption Notice 2003 (which expired on 30 September 2008). There are 3 main substantive changes to the conditions of the previous exemptions granted to the trust in the expired notice. These are changes to the monetary limits in clause 6(b) and (c), and the removal of the condition that prevented the trust from also relying on the class notice. In addition, there are minor changes in wording in certain areas.

The Securities Commission considers that it is appropriate to grant the exemptions because—

  • the trust is a charitable trust that provides interest-free loans and budget advice to persons on low incomes in Canterbury. It receives funds from the public in exchange for debt securities on which it does not pay interest. The exemptions are consistent with the broader policy of the charitable and religious purposes class notice in respect of debt securities issued for charitable purposes and also with previous exemptions granted to the trust; and

  • the total financial cap on outstanding debt securities is the same as the cap in the class notice. The financial cap on securities that may be issued in a 12-month period is higher than in the class notice, but lower than in the trust's previous exemptions. This will enable the trust to continue with its activities on a sufficient scale to achieve its charitable purposes; and

  • the restriction against paying interest on deposits means it is clear that the depositors' purpose is to support the charitable purposes of the trust rather than invest for a commercial return. The conditions of exemption require the trust to draw attention to its charitable nature and emphasise that if earning interest is important to depositors they should seek investment advice; and

  • the exemptions in this notice expire at the same time as the exemptions in the class notice and will be reviewed at the same time as the review of the exemptions in the class notice.


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

Date of notification in Gazette: 16 July 2009.


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 (Kingdom Resources Trust) Exemption Notice 2009. The reprint incorporates all the amendments to the notice as at 1 December 2012, 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 (Kingdom Resources Trust) Exemption Notice 2009 (SR 2009/198): clause 3