This note is not part of the regulations, but is intended to indicate their general effect.
The Financial Advisers Act 2008 provides that a unit in a cash or term portfolio investment entity (as defined in the principal regulations) is a category 2 product (see paragraph (g) of the definition of that term in section 5 of the Act). Regulation 4 amends the definition of cash or term portfolio investment entity in regulation 4 of the principal regulations to allow the units to be issued by a registered bank (as well as a subsidiary of a registered bank).
Regulation 7B of the principal regulations specifies certain bank notice products as category 2 products for the purposes of the Financial Advisers Act 2008. Under regulation 7B(4), this regulation was to be in force for a 5-year period ending on 30 June 2016. The effect of regulation 5 is to remove this time limit so that bank notice products will continue to be category 2 products after 30 June 2016.
Date of notification in Gazette: 2 June 2016.
These regulations are administered by the Ministry of Business, Innovation, and Employment.