The Financial Markets Authority (FMA) has extended the Securities Act (Real Property Developments) Exemption Notice 2007 (the Notice) to 30 November 2016.
The Notice applies to participatory securities offered in the form of membership of an incorporated society, or a shareholding in a company, that owns, leases, licenses, maintains, administers, or operates communal facilities in a real property development. The Notice provides relief from the requirement to appoint a statutory supervisor, the prospectus and investment statement requirements, the restrictions on statements in advertisements by experts, and the requirement to produce certificates evidencing securities. The Notice requires developers to give purchasers information about their interests in the society or company and the intended communal facilities including the likely levies or fees.
In light of the enactment of the Financial Markets Conduct Act 2013 (FMCA) and prior to the disclosure provisions of the FMCA coming into force, the FMA is proposing to conduct a review of such offers of participatory securities with a view to indicating FMA’s approach to such offers under the new FMCA regime.