Dated at Wellington this 4th day of May 2010.
Statement of reasons
Note: the following statement of reasons should be read in conjunction with the statement(s) of reasons appended to:
This notice comes into force on the day after the date of its notification in the Gazette and expires on 30 November 2012. It exempts from the requirement to have a credit rating under section 157I of the Reserve Bank of New Zealand Act 1989 (the Act) deposit takers that are issuing debt securities in reliance on the exemption granted by clause 5 of the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003.
The exemption granted by clause 5 of the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003 applies to organisations that are exclusively for charitable, religious, and certain other purposes and is from the trustee and trust deed, prospectus, and investment statement requirements of the Securities Act 1978 and certain requirements of the Securities Regulations 1983.
The Reserve Bank of New Zealand, after taking into account the principles set out in section 157F of the Act, and satisfying itself as to the matters set out in section 157G(2) of the Act, considers it is appropriate to grant the exemption because—
the Bank is satisfied that compliance with section 157I would be unduly onerous and burdensome in the circumstances. The relevant circumstances include that the deposit takers are established for charitable, religious, educational, or recreational purposes, that they operate under an exemption from certain requirements of the Securities Act 1978 and that, in various other ways, they are distinct from other deposit takers. These circumstances, in combination, limit the relevance of the deposit taker regime. The relevance of the circumstances may change in the future, for example, depending upon whether the Securities Act 1978 exemption, which is due to expire in 2012, is renewed:
granting a temporary exemption is consistent with the maintenance of a sound and efficient financial system, given that the class of deposit takers benefiting from this exemption is a small proportion of all deposit takers and their treatment is unlikely to have a material impact on the system:
Note: the preceding statement of reasons should be read in conjunction with the statement(s) of reasons appended to: