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 (Audiovisual Advertisements) Exemption Notice 2002 (the 2002 notice).
The notice exempts persons offering debt securities to the public in audiovisual advertisements from compliance with a number of the requirements of the Securities Regulations 2009 relating to the advertising of securities.
The provisions of the 2002 notice have been carried forward with little change of substance. However, changes have been made to—
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 exemptions because—
the 2002 notice addresses the pragmatic limitations of radio, television, and film advertising when providing certain detailed information, by requiring investors' attention to be drawn to where those investors can access an investment statement with fuller information:
changes introduced by the Securities Regulations 2009 did not attempt to tailor disclosure and conduct requirements to the extensive range of circumstances to which securities law requirements apply and so have not tailored the detailed requirements of advertisements in those media to address those pragmatic limitations. In these circumstances, the exemptions continue to be required:
the extension to cover audio and video accessed from the Internet recognises the increased use by issuers of these new communication options. The Financial Markets Authority considers that the pragmatic limitations of advertising by radio, television, and film are shared by advertisements distributed by audio and video accessed from the Internet, and that the same relief is therefore appropriate:
given the limited application of the notice to advertisements in media in which pragmatic limitations on advertisement content arise, and the requirement that investors’ attention be drawn to the investment statement, the Financial Markets Authority considers that the exemptions, as extended, will not cause significant detriment to subscribers and are not broader than is reasonably necessary to address the matters that gave rise to the exemptions.
Date of notification in Gazette: 27 September 2012.
This notice is administered by the Financial Markets Authority.