Financial Reporting Act (Extension of Term) Exemption Notice 2012

2012/296

Coat of Arms of New Zealand

Financial Reporting Act (Extension of Term) Exemption Notice 2012

Pursuant to section 35A of the Financial Reporting Act 1993, the Financial Markets Authority gives the following notice (to which is appended a statement of reasons of the Financial Markets Authority).

Notice

1 Title
  • This notice is the Financial Reporting Act (Extension of Term) Exemption Notice 2012.

2 Commencement
  • This notice comes into force on the day after the date of its notification in the Gazette.

3 Amendments to notices
  • Amend the notices specified in the Schedule as set out in that schedule.


Schedule
Amendments to notices

cl 3

Financial Reporting Act (Overseas Companies) Exemption Notice 2007 (SR 2007/275)

In clause 3, replace 30 September 2012 with 31 March 2013.

Financial Reporting Act (Overseas Issuers) Exemption Notice 2009 (SR 2009/2)

In clause 3, replace 30 September 2012 with 31 March 2013.

Dated at Wellington this 24th day of September 2012.

Sue Brown,
Head of Primary Regulatory Operations.


Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette, extends the terms of the following class exemption notices until 31 March 2013:

These notices exempt the directors of certain issuers incorporated in overseas jurisdictions from various provisions of the Financial Reporting Act 1993 where an offer of securities has been made in New Zealand in reliance upon various class exemptions granted under the Securities Act 1978.

The Financial Markets Authority, after satisfying itself as to the matters set out in section 35A(2) of the Financial Reporting Act 1993, considers it appropriate to extend the terms of these notices because,—

  • if not extended, both of these notices would expire on the close of 30 September 2012; and

  • the Financial Markets Authority has received and considered submissions on these notices, and substantially developed proposals for new similar exemptions. The conditions of each notice require compliance with financial reporting requirements under the laws in force in certain specified countries where an overseas issuer seeking to rely on the notice can be incorporated or constituted. The Financial Markets Authority has considered the financial reporting requirements of those countries and concluded that they would provide New Zealand securities holders with sufficient financial information in the context of the interests the New Zealand subscribers have in these overseas issuers. The Financial Markets Authority has also considered the other requirements prescribed by the notices. In these circumstances, the extension of the exemptions will not cause significant detriment to subscribers who are members of the public in New Zealand; and

  • the Financial Markets Authority considers that some amendments are appropriate to enhance the effectiveness of the notices in facilitating efficient and transparent financial reporting on the securities to which they relate. The Financial Markets Authority considers that further time is desirable for consultation on, and finalisation of, those proposals. For this purpose, this notice extends the expiry of these notices until 31 March 2013. The Financial Markets Authority considers that this extension is not broader than is reasonably necessary to enable further required consultation and finalisation of the proposals, and so is not broader than the matters giving rise to the exemption.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 27 September 2012.

This notice is administered by the Financial Markets Authority.