The Financial Markets Authority ("FMA") has reviewed the application of the Securities Act (Real Property Proportionate Ownership Schemes) Exemption Notice 2002. It provides exemptions from some Securities Act requirements in relation to offers to the public of interests in real property proportionate ownership schemes, provided that alternative requirements are met.

Having conducted its review and considered submissions from stakeholders, the FMA considers that the significant exemptions from the legislative and regulatory requirements contained in the Notice are not justified or required in terms of the purpose of the Securities Act. The FMA is therefore proposing not to grant further similar exemptions when the Notice expires on 30 September 2012.

The FMA does however note that a new limited exemption will likely be required in relation to proportionate ownership schemes investing in property developments to allow for the extension of the prospectus for allotment of interests in schemes. This would recognise the fact that there may be a long period of time between subscription and allotment, and market movements and other events may mean that the prospectus is no longer up to date at the time of allotment.

The FMA proposes a transitional provision enabling offers that have commenced before 30 September 2012 to be completed in reliance on the Notice and to continue until 30 November 2012. Any offer commencing after 30 September 2012 would be required to be offered in full compliance with the Securities Act and Regulations.

Submissions on the changes proposed by the FMA are due by 24 September. More information on the FMA's proposals can be found here.