In our FMCA update of 24 July, we indicated that further Cabinet decisions were to be made on the final policy decisions for FMC Regulations.

The Cabinet decisions have now been released and are available here.

Decisions include:

  • confirming the most recent proposals on fixed page lengths for the PDS
  • confirming the PDS for debt and equity to include three years of summary financial information prepared under GAAP
  • confirming the PDS for equity to include two years of prospective financial information - unless it would be misleading to do so 
  • allowing summaries of material contracts to be placed on the online register instead of the full material contract
  • extending the 'same class' quoted debt securities exclusion, picking up on submissions made by Chapman Tripp
  • confirming the requirement for debt offers to contain a diagram illustrating ranking - this has recently become a market practice
  • clarifying the obligations of auditors to report to supervisors
  • allowing securities market operators (other than NZX) an extra year to obtain a licence (for example, Unlisted)
  • allowing derivative issuers until 1 May 2015 to adopt the new PDS requirements (or 1 December 2015 if offer documents are already required by their licence), and
  • allowing until 1 December 2015 for derivative issuers to adopt new investor fund custodian requirements.