Securities Act (Directors' Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013

  • revoked
  • Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013: revoked, on the close of 30 November 2016, pursuant to clause 3 of the Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Notice 2011 (SR 2011/430).

Reprint as at 1 December 2016

Coat of Arms of New Zealand

Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013

(SR 2013/497)

Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013: revoked, on the close of 30 November 2016, pursuant to clause 3 of the Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Notice 2011 (SR 2011/430).

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This notice is administered by the Financial Markets Authority.

Pursuant to sections 70B and 70D of the Securities Act 1978, 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 Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013.

2 Commencement

This notice comes into force on 31 December 2013.

3 Principal notice

This notice amends the Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Notice 2011 (the principal notice).

4 Clause 3 replaced (Expiry)

Replace clause 3 with:

3 Revocation

This notice is revoked on the close of 30 November 2016.

5 Clause 5 amended (Application if prospectus relates to 2 or more types of securities)

In clause 5(2)(b), replace “clause 6, or clauses 8 and 10,” with “clauses 8 and 10”.

6 Clause 8 amended (Exemption from section 37A(1A)(c)(i) of Act in respect of renewals before 31 March 2013)

(1)

In the heading to clause 8, delete “before 31 March 2013”.

(2)

In clause 8, delete “on or before 31 March 2013”.

Dated at Auckland this 16th day of December 2013.

Simone Robbers,
Head of Primary Regulatory Operations.

Statement of reasons

This notice, which comes into force on 31 December 2013, amends the Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Notice 2011 (the principal notice). The principal notice exempts, subject to conditions, the issuers of certain collective investment schemes from section 37A(1A)(c)(i) of the Securities Act 1978 (the Act). The effect of the amendment is that, instead of expiring on the close of 31 December 2013, the principal notice will remain in force 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 Act, considers it appropriate to amend the principal notice because—

  • the principal notice provides relief to issuers of liquid collective investment schemes from the requirement to register a new prospectus in circumstances where an existing prospectus is not false or misleading, but there has been a material and adverse change in the financial circumstances of the scheme, either because of general market volatility or because investment redemptions have exceeded new investments in the scheme. The FMA considers that the policy reasons for the principal notice remain valid and relevant. Consultation with market participants by the FMA demonstrates that issuers may need to continue to rely on the exemption in the event that the market is subject to volatility:

  • the conditions of the principal notice ensure that key information relating to a scheme’s adverse change in financial position is easily available and is provided in an understandable form that enables investors to make informed decisions about their investment options:

  • a requirement to immediately register a new prospectus would impose costs on the issuer that would not be matched by the benefits to investors of a new prospectus.

In light of the limited application of the exemption to liquid collective investment schemes, and the conditions of the exemption, which require registration and publication of updated financial information about such schemes, the FMA is satisfied that the exemption is not broader than is reasonably necessary and will not cause significant detriment to subscribers for the schemes to which the exemption relates.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 19 December 2013.

Reprints notes
1 General

This is a reprint of the Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Amendment Notice 2013 that incorporates all the amendments to that notice as at the date of the last amendment to it.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.

4 Amendments incorporated in this reprint

Securities Act (Directors’ Certificates—Collective Investment Schemes) Exemption Notice 2011 (SR 2011/430): clause 3