Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette, amends the Securities Act (Authorised Futures Contracts) Exemption Notice 2002.

The principal notice exempts every person who deals in an authorised futures contract, every person acting on behalf of that person, and every person for whom that person acts, from the prospectus and investment statement requirements and certain other requirements of the Securities Act 1978 (the Act) and the Securities Regulations 1983 in respect of that contract.

This notice provides that the exemption in the principal notice does not apply to Savings & Investments Limited.

The Securities Commission considers that it is appropriate to amend the principal notice because—

• the principal notice exempts futures contracts from the Act to avoid the risk of duplication. This risk arises because many futures contracts are technically securities as defined in the Act, but securities regulation does not provide for disclosure that is tailored to these contracts and the needs of investors in the contracts:

• Savings & Investments Limited, which will be authorised to deal in futures contracts under the Securities Markets Act 1988, is the manager of a unit trust. This unit trust proposes to issue units that are foreign currency futures contracts. The units will be offered to the public. As the Act and the Securities Regulations 1983 specifically provide for offers of units, it is appropriate for that legislation to apply to the futures contracts offered by Savings & Investments Limited.