Since the introduction of the new prospectus registration regime in May 2011 (under the Securities Amendment Act 2011), FMA continued to carry out a limited pre-registration review process consistent with the review process previously undertaken by the Companies Office to support issuers in the transition to the new regime. This service ended on 30 March 2012.

FMA will continue to review prospectuses post-registration under its new risk-based framework. This includes any reviews performed under the consideration timeframe of five working days introduced by the Securities Amendment Act 2011.

Although the pre-registration vetting service has ended, FMA has indicated that it is still keen to engage with issuers before they register offer documents on novel products, strategic issues, complex or big issues or significant issues of securities (for example major IPOs). In such cases issuers are encouraged to contact FMA as early as possible but are told to be selective about the issues that they raise (for the simple reason that FMA does not have the resources to engage on every offer or concern).

It is also expected that the proposed new FMA Guidance Note on Effective Disclosure (discussed in the previous item) will assist issuers to ensure that their offer documents comply with the Securities Act and the relevant regulations.

Under the new risk-based framework for reviewing prospectuses post-registration, FMA aims to review 100 percent of high-risk prospectuses and 5 percent of other prospectuses post-registration.

For details of the new prospectus registration regime see Issue No. 8 of Corporate Reporter.