Dated at Wellington this 22nd day of March 2011.
The Common Seal of the Securities Commission was affixed in the presence of:
Statement of reasons
Note: The following statement of reasons should be read in conjunction with the statement(s) of reasons appended to the:
This notice, which comes into force on the day after the date of its notification in the Gazette and expires on 30 September 2012, replaces the Securities Act (Friendly Societies) Exemption Notice 2002 (the 2002 notice).
This notice exempts, subject to conditions, the friendly societies named in the Schedule from various provisions of the Securities Act 1978 (the Act) and the Securities Regulations 2009 (the 2009 regulations) in respect of participatory securities and life insurance policies issued by them, including—
section 37(2) and (3) of the Act in respect of participatory securities (which relate to the minimum amount of subscriptions being specified in the prospectus and a statement relating to subscriptions being received by, or on behalf of, the statutory supervisor):
sections 51, 52, 53E, and 54 of the Act (which relate to registers of securities, inspection of those registers, the auditing of financial statements, and the issue of certificates evidencing participatory securities):
regulation 41 of the 2009 regulations and certain other requirements of the 2009 regulations that relate to the contents of deeds of participation:
various requirements of the 2009 regulations relating to the content of a registered prospectus:
certain requirements of the 2009 regulations relating to the supply of documents to the Registrar on registration of the prospectus.
The Securities Commission considers that it is appropriate to grant the exemptions because,—
to a large extent, the exempted requirements are duplicated in the Friendly Societies and Credit Unions Act 1982. This is reflected in the fact that the exemptions are conditional on the friendly society carrying out its obligations under the terms of the offer, the provisions of the Friendly Societies and Credit Unions Act 1982, and the rules of the friendly society:
the conditional exemption from the presentation of financial statements reflects the fact that friendly societies do not prepare their accounts on a separate fund-by-fund basis but complete accounts in respect of their operations as a whole:
the notice continues exemptions from provisions of the Act previously provided in the 2002 notice, and provides for existing exemptions from provisions of the Securities Regulations 1983 to be provided to equivalent effect from relevant provisions of the 2009 regulations. While the changes in the 2009 regulations will reduce costs for issuers and improve information for investors, they do not attempt to tailor disclosure requirements specifically for all of the circumstances to which securities law requirements apply. Accordingly, exemptions to equivalent effect continue to be required, and remain appropriate in light of the policy of exemptions for friendly societies:
the transitional provisions reduce the short-term compliance costs resulting from the regulatory changes for issuers that have previously relied on the 2002 notice. These issuers may continue to rely on the 2002 notice in respect of securities offered under an existing registered prospectus.
Note: The preceding statement of reasons should be read in conjunction with the statement(s) of reasons appended to the: