This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 10 June 2013, amend the Financial Advisers (Definitions, Voluntary Authorisation, Prescribed Entities, and Exemptions) Regulations 2011 to reclassify the following products as category 2 products (see paragraph (k) of the definition of category 2 product in section 5 of the Financial Advisers Act 2008):
The principal regulations already specify a certain kind of credit union share (an FSCU share) as a category 2 product (see regulation 7). The main differences between an FSCU share and the products referred to above are as follows:
under an FSCU share, the rate of return provided does not alter as a result of a repayment demand being made. However, under a credit union fixed term deposit product, the rate of interest payable may alter as a result of a demand being made:
under an FSCU share, no fee is payable as a result of the principal sum not having been held by the credit union for a particular period of time. However, under a credit union savings account product, a fee of up to $50 may be payable.
Date of notification in Gazette: 6 June 2013.
These regulations are administered by the Ministry of Business, Innovation, and Employment.