This notice, which comes into force on the day after the date of its notification in the Gazette, extends the expiry date of the Securities Act (Dividend Reinvestment) Exemption Notice 1998 (the principal notice) from 30 September 2010 to 30 September 2015. It also amends the principal notice so that it provides an exemption from the Securities Regulations 2009 (except regulation 23) instead of the Securities Regulations 1983 (except regulation 8).

The Securities Commission considers that it is appropriate to amend the principal notice because—

• the principal notice exempts issuers from the need to produce a registered prospectus and investment statement in respect of equity securities, units in a unit trust, or interests in a group investment fund offered under a dividend reinvestment plan only to persons who already hold securities of the issuer of the same kind as those being offered. The principal notice recognises that existing holders of the issuer’s securities will have access to key relevant information about the issuer:

• the conditions of the exemption reduce the costs associated with a dividend reinvestment plan, while providing protection for investors by requiring the provision of alternative disclosure, and by preventing the allotment of securities under the principal notice if an issuer has any undisclosed information that would be likely to have an adverse effect on the share price:

• the new exemption from all of the provisions of the Securities Regulations 2009 (except regulation 23) has the same effect as the existing exemption granted in respect of the Securities Regulations 1983 (except regulation 8).