Financial Markets Conduct (Small Co-operatives) Exemption Notice 2016

  • revoked
  • Financial Markets Conduct (Small Co-operatives) Exemption Notice 2016: revoked, on the close of 22 December 2021, by clause 3.

Schedule 2 Warning statements

cls 7(b), 10, 13

Part 1

Under the Financial Markets Conduct Act 2013, co-operative companies and industrial and provident societies making an offer of co-operative shares have to give information about themselves and the shares to investors. They also have to provide shareholders with ongoing financial information about the shares and the company. In most cases, this information must meet legal requirements under that Act for financial reporting and the auditing of financial statements. This is to help investors make informed decisions.

In this case, these rules do not apply because there is an exemption where the total amount to be invested by individual investors in co-operative shares of a co-operative company or industrial and provident society is $5,000 or less (including any shares already held). This exemption recognises that, for the shareholders, these co-operative shares are more like a membership than an investment.

As a result, you may not be given all the information usually required.

Part 2

You hold [description of co-operative shares] in [name of issuer]

Under the Financial Markets Conduct Act 2013, co-operative companies and industrial and provident societies that have issued co-operative shares usually have to make available ongoing financial information about themselves and the co-operative shares to investors. This is to help investors make informed decisions. In most cases, this information must meet legal requirements under that Act for financial reporting and the auditing of financial statements.

These rules do not apply in relation to these co-operative shares because there is an exemption where the total amount invested by individual investors in co-operative shares of a co-operative company or industrial and provident society is $5,000 or less. This exemption recognises that, for the shareholders, these co-operative shares are more like a membership than an investment.

As a result, you may not be given all the financial information usually required.

Part 3

Under the Financial Markets Conduct Act 2013, co-operative companies and industrial and provident societies that have issued co-operative shares usually have to make available ongoing financial information about themselves and the shares to investors. This is to help investors make informed decisions. In most cases, this information must meet legal requirements under that Act for financial reporting and the auditing of financial statements.

These rules do not apply to [name of issuer] for [relevant accounting period] because there is an exemption for issuers of co-operative shares where the issuer’s annual revenue is $2 million or less.

As a result, the information provided in this document may not contain all the financial information usually required to be provided to shareholders for [relevant accounting period].

Dated at Auckland this 21st day of December 2016.

Nick Kynoch,
General Counsel.