Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette, provides a transitional provision in respect of the Securities Act (Australian Issuers) Exemption Notice 2002 (the notice) which expires on 31 March 2013. The transitional provision allows an Australian issuer to continue to rely on that notice until 31 December 2013.

The Financial Markets Authority, after satisfying itself as to the matters set out in section 70B(2) of the Securities Act 1978, considers it appropriate to grant the exemption because—

• the transitional provision allows Australian issuers that have already offered securities in a particular scheme to the public in reliance on the notice to rely on the notice until 31 December 2013:

• additional compliance costs would be incurred by requiring compliance with the Securities (Mutual Recognition of Securities Offerings—Australia) Regulations 2008 for those offers where offer documents have already been prepared in reliance on the notice:

• given that the transitional provision is of limited scope, the Financial Markets Authority does not consider that it will cause significant detriment to subscribers. Nor does it consider that the transitional provision is broader than is reasonably necessary to provide a reasonable transition for market participants who are currently relying on the notice.