Dated at Wellington this 26th day of September 2013.
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, amends the Securities Act (Real Property Developments) Exemption Notice 2007 (the principal notice) by extending the term of the notice until the close of 30 November 2016.
The Financial Markets Authority (the FMA), after satisfying itself as to the matters set out in section 70B(2) of the Securities Act 1978 (the Act), considers it appropriate to amend the principal notice because—
the current general policy of the notice remains appropriate, namely that the specified securities are offered as ancillary features to real estate transactions and are not investments in the conventional sense, so that substantial exemptions from the ordinary conduct and disclosure requirements of the Act and the Securities Regulations 2009 are appropriate. The terms and conditions of the existing notice impose appropriate conduct and disclosure requirements so as not to cause any significant detriment to subscribers who are members of the public in New Zealand:
in light of the Financial Markets Conduct Act 2013 (the FMCA) being enacted, the FMA will, prior to the disclosure provisions in the FMCA coming into effect, consider its approach to these participatory securities under the FMCA:
the FMCA includes a 2-year transitional provision from the date of the disclosure provisions in that Act coming into force for offers made in reliance on an exemption granted under the Securities Act 1978. Because of this, the FMA considers that extending the term of the principal notice to 1 December 2016 is desirable. The FMA does not consider that the extension is broader than is reasonably necessary to address the matters that gave rise to the exemption.
Date of notification in Gazette: 27 September 2013.
This notice is administered by the Financial Markets Authority.