An Order in Council specifying the provisions of the Financial Markets Conduct Act 2013 (FMC Act) which came into force on 1 April and the regulations required to give effect to those provisions were enacted last month.
As expected, the Government has fast-tracked a number of measures directed at improving access to New Zealand’s capital markets, particularly for smaller fundraising initiatives. This includes the provisions that facilitate equity crowd funding and peer-to-peer lending, which are intended to provide further avenues for early-stage and growth companies to raise capital.
Companies will also be able to take advantage of the new “small offers” regime and the reduced disclosure required for offers made under employee share schemes.
Listed issuers will be able to conduct rights issues through market announcements (similar to the Australian “cleansing notice” regime) rather than a simplified disclosure prospectus.
For more detailed information, and a summary of first implementation phase of the FMC Act, see our earlier client update here.
Links to the relevant legislation
To access the legislation relevant to the implementation of Phase 1 of the FMC Act click on the links below:
Click here to view table.