Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Amendment Notice 2020

2020/333

Coat of Arms of New Zealand

Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Amendment Notice 2020

Pursuant to sections 556 and 572 of the Financial Markets Conduct Act 2013, the Financial Markets Authority, being satisfied of the matters set out in section 557 of that Act, gives the following notice.

Notice

1 Title

This notice is the Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Amendment Notice 2020.

2 Commencement

This notice comes into force on 15 March 2021.

3 Principal notice
4 Clause 4 amended (Interpretation)

In clause 4(1), definition of simple debt products, paragraph (a), delete “within the meaning of section 5 of the Financial Advisers Act 2008”.

Dated at Auckland this 17th day of December 2020.

Nick Kynoch,
General Counsel,
Financial Markets Authority.

Statement of reasons

This notice, which comes into force on 15 March 2021, amends the Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Notice 2016 (the principal notice).

The principal notice enables overseas banks, under certain circumstances, to offer call debt securities and fixed term deposit products (simple debt products) to New Zealand investors through an easier compliance path that is similar to that available to New Zealand registered banks.

This notice amends the definition of simple debt products to update a cross-reference to the definition of call debt securities in the Financial Advisers Act 2008, which will be repealed on 15 March 2021. From that date, the Financial Markets Conduct Regulations 2014 will contain a definition of call debt security. Under clause 4(2) of the principal notice, the definition in the regulations will apply to the notice, so there is no need for the notice to repeat it. Accordingly, this notice removes the cross-reference.

The Financial Markets Authority (the FMA), after satisfying itself as to the matters set out in section 557 of the Financial Markets Conduct Act 2013 (the Act), considers it appropriate to amend the principal notice to ensure that it continues to have its intended effect. The FMA is satisfied that the policy reasons for granting the exemption in the principal notice remain valid and relevant, and that the exemption continues to be desirable to promote 1 or more of the purposes of the Act. The FMA is further satisfied that the amendment is not broader than reasonably necessary because it does not materially alter the effect of the principal notice.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 22 December 2020.

This notice is administered by the Financial Markets Authority.