Dated at Wellington this 18th day of May 2010.
The Common Seal of the Securities Commission was affixed in the presence of:
Statement of reasons
This notice, which comes into force on the day after the date of its notification in the Gazette and expires on 31 December 2011, replaces the Securities Act (New Zealand Deposit Guarantee Scheme) Exemption Notice 2008 (the 2008 notice).
This notice exempts financial institutions that are a party to a deed of guarantee entered into with the Crown under a Crown retail deposit guarantee scheme from certain provisions of the Securities Act 1978, the Securities Regulations 1983, and the Securities Regulations 2009 in order to facilitate the operation of that deposit guarantee scheme.
The main differences between this notice and the 2008 notice are as follows:
The Securities Commission considers that the exemptions are appropriate because the New Zealand Deposit Guarantee Scheme was put in place to maintain public confidence in New Zealand's financial system and to maintain the confidence of general public depositors in relevant New Zealand financial institutions. The Crown Retail Deposit Guarantee Scheme Act 2009 was passed to provide a mechanism for providing extended guarantees to certain financial institutions to maintain public confidence in those institutions and in New Zealand financial institutions more generally. Securities law contains specific rules concerning advertising and disclosure of guarantees. The exemptions in this notice facilitate prompt and simple disclosure to investors about any issuer's coverage under the schemes. The exemptions also encourage the delivery of standardised information about the schemes in order to avoid investor confusion about the schemes and the application of a Crown guarantee to any issuer. The conditions of exemption require the issuers to advise investors about their coverage under the schemes, refer investors to an authoritative source of information about the schemes, and prevent descriptions of the schemes that are inconsistent with official descriptions.