FMA is reviewing 44 class exemption notices which expire this year. Two provide exemptions from provisions of the Financial Reporting Act 1993 for overseas issuers and the remainder provide exemptions from provisions of the Securities Act 1978. A summary of each of the expiring notices is available here.
Although law reform envisaged by the Financial Markets Conduct Bill may attend to some of the issues currently addressed by these exemptions, FMA is of the view that most of these class exemptions are likely to be required for a number of years given the timeframe anticipated for passage of the bill and providing for a transitional period. Accordingly, FMA is seeking submissions on all of the exemption notices and expects to complete the review of each exemption before it expires.
Exemption notices requiring significant review
FMA have identified a number of notices that require significant review. These include:
- exemptions providing relief in relation to real property (e.g., the Securities Act (Real Property Proportionate Ownership Schemes) Exemption Notice 2002, the Securities Act (Real Property Developments) Exemption Notice 2002; and the Securities Act (Estates and Interests in Australian Land) Exemption Notice 2002);
- exemptions relating to offers of securities for the purpose of reconstructions (e.g., the Securities Act (Amalgamations) Exemption Notice 2002, the Securities Act (Takeovers) Exemption Notice 2002, the Securities Act (Renewals and Variations) Exemption Notice 2001, and the Securities Act (Co-operative Companies) Exemption Notice 2002);
- exemptions for deposit takers; and
- exemptions that recognise securities offerings or financial reporting regimes on the basis of sufficiency of the regimes in foreign jurisdictions (e.g., the Securities Act (Overseas Companies) Exemption Notice 2002, the Securities Act (Overseas Listed Issuers) Exemption Notice 2002, the Securities Act (Australian Issuers) Exemption Notice 2002, the Securities Act (Overseas Employee Share Purchase Schemes) Exemption Notice 2002, the Financial Reporting Act (Overseas Companies) Exemption Notice 2007, and the Financial Reporting Act (Overseas Issuers) Exemption Notice 2009).
Notices identified as likely to be redundant
FMA's initial review has identified the following notices as redundant and it is seeking feedback on whether there are any ongoing reasons for them to be retained:
- Securities Act (Certificates for Securities Transferred Electronically) Exemption Notice 2003;
- Securities Act (Life Insurance Companies) Exemption Notice 2002;
- Securities Act (NZX Issuers) Exemption Notice 2007; and
- Securities Act (Superannuation Schemes – Summary of Financial Statements) Exemption Notice 2006.
The general timetable proposed by FMA for this review is summarised below.
Click here to view the table.