Dated at Wellington this 24th day of September 2012.
Head of Primary Regulatory Operations.
Statement of reasons
This notice, which comes into force on 1 October 2012 and expires on 30 September 2017, replaces the Securities Act (Advertisements Containing Investment Advice) Exemption Notice 2002. The provisions of that notice have been carried forward with little change of substance. However, changes have been made to—
This notice exempts issuers, subject to conditions, from regulation 30 of the Securities Regulations 2009 in the case of advertisements for securities containing financial advice that is customer-specific or client-specific (the financial advice). Regulation 30 prohibits the distribution of an advertisement containing an offer of securities unless a certificate that complies with that regulation has been completed at the time the advertisement is distributed.
This notice will enable financial institutions and other issuers of securities to give financial advice involving offers of securities issued by them, or by related bodies corporate, that is based on personal information about those customers or clients without the need for a certificate under regulation 30.
The Financial Markets Authority, after satisfying itself as to the matters set out in section 70B(2) of the Securities Act 1978, considers it appropriate to grant the exemption because—
all of the information in the advertisement (other than the financial advice and personal information) must also be contained in a registered prospectus (or a registered bank's disclosure statement), or in an investment statement or another authorised advertisement for which there is a certificate under regulation 30 of the Securities Regulations 2009. The advertisement must be distributed by a person who is permitted to provide financial adviser services under the Financial Advisers Act 2008. Despite minor changes introduced by the Securities Regulations 2009 to advertising certificate requirements, a certificate is still required for every advertisement (within the meaning of the Securities Act 1978) unless an exemption is granted. In these circumstances, this notice removes unduly burdensome advertising certificate requirements where the information in an advertisement has already been subject to appropriate controls; and
changes made in this notice also recognise the relevance of the Financial Advisers Act 2008 to advertisements in which personal financial advice is given; and
given that the exemption only applies to advertisements that are subject to these appropriate alternative controls, the Financial Markets Authority considers that the exemption will not cause significant detriment to subscribers and that it is not broader than is reasonably necessary to address the matter that gave rise to the exemption.
Date of notification in Gazette: 27 September 2012.
This notice is administered by the Financial Markets Authority.