The FMA has made its decision on all of the 44 class exemption notices that were or are under review that were scheduled to expire in 2012 and has put into effect some of its decisions by giving the necessary notices under the Securities Act 1978. As noted in our June and August legal updates, a number of exemption notices from the Securities Act 1978 and other financial markets legislation are due to expire in 2012.

The FMA has renewed a number of exemption notices for five years by issuing new notices on substantially the same terms as the expired notices with some minor amendments. The new notices are:

  • Securities Act (Advertisements Containing Financial Advice) Exemption Notice 2012 (replaces the Securities Act (Advertisements Containing Investment Advice) Exemption Notice 2002)
  • Securities Act (Audiovisual Advertisements) Exemption Notice 2012 (replaces the Securities Act (Audiovisual Advertisements) Exemption Notice 2002)
  • Securities Act (Banks) Exemption Notice 2012 (replaces Securities Act (Banks) Exemption Notice 2002)
  • Securities Act (Brokers) Exemption Notice 2012 (replaces Securities Act (Sharebrokers) Exemption Notice 1984)
  • Securities Act (Commercial Bill Dealers) Exemption Notice 2012 (replaces Securities Act (Commercial Bill Dealers) Exemption Notice 2002)
  • Securities Act (Continuous Debt Issues) Exemption Notice 2012 (replaces Securities Act (Continuous Debt Issues) Exemption Notice 2002)
  • Securities Act (Equity Warrant Issuers) Exemption Notice 2012 (is on substantially the same terms as the Securities Act (Equity Warrant Issuers) Exemption Notice 2002 but relates to the Securities Regulations 2009 rather than the Securities Regulations 1983)
  • Securities Act (Unit Trust Certificates) Exemption Notice 2012 (replaces the Securities Act (Unit Trust Certificates) Exemption Notice 2002).

The FMA has extended a number of exemption notices for five years (in some instances with some minor amendments). Those notices are:

  • Securities Act (Authorised Futures Contracts) Exemption Notice 2002
  • Securities Act (Bloodstock) Exemption Notice 2002
  • Securities Act (Contributory Mortgage Brokers) Exemption Notice 1983
  • Securities Act (Employee Share Purchase Schemes - Listed Companies) Exemption Notice 2011
  • Securities Act (Employee Share Purchase Schemes - Unlisted Companies) Exemption Notice 2011
  • Securities Act (French Issuers Employee Share Purchase Schemes) Exemption Notice 2010
  • Securities Act (Group Investment Index Funds) Exemption Notice 2002
  • Securities Act (Overseas Takeovers by New Zealand Companies) Exemption Notice 2002
  • Securities Act (Registered Banks Futures Contracts) Exemption Notice 2007
  • Securities Act (Short Form Prospectus) Exemption Notice 2009
  • Securities Act (Venture Capital Schemes) Exemption Notice 2008.

Work is continuing on the following exemption notices which have been extended until 31 March 2013:

  • Financial Reporting Act (Overseas Companies) Exemption Notice 2007
  • Financial Reporting Act (Overseas Issuers) Exemption Notice 2009
  • Securities Act (Australian Issuers) Exemption Notice 2002
  • Securities Act (Building Societies) Exemption Notice 2002
  • Securities Act (Co-operative Companies) Exemption Notice 2011
  • Securities Act (Financial Institutions) Exemption Notice 2011
  • Securities Act (Friendly Societies) Exemption Notice 2011
  • Securities Act (Industrial and Provident Societies) Exemption Notice 2011
  • Securities Act (Overseas Companies) Exemption Notice 2002
  • Securities Act (Overseas Employee Share Purchase Schemes) Exemption Notice 2002
  • Securities Act (Overseas Listed Issuers) Exemption Notice 2002
  • Securities Act (Real Property Developments) Exemption Notice 2007
  • Securities Act (Renewals and Variations) Exemption Notice 2002
  • Securities Act (Rights, Options and Convertible Securities) Exemption Notice 2002
  • Securities Act (Takeovers) Exemption Notice 2011.

The FMA has extended the following exemption notices for a short period to allow further work to be undertaken:

  • Securities Act (Charitable and Religious Purposes) Exemption Notice 2003 for 12 months to allow the FMA and the Reserve Bank to undertake a comprehensive review of the exemption notice and the complimentary Deposit Takers (Charitable and Religious Organisations) Exemption Notice 2010
  • Securities Act (Contributory Mortgage) Regulations (Solicitors) Exemption Notice 1996 for nine months to allow the FMA to review offers of contributory mortgage advice given by solicitors.

The Securities Act (Real Property Proportionate Ownership Schemes) Exemption Notice 2002 expired without replacement on 30 September 2012. However, issuers can continue to rely on the Exemption Notice in respect of offers of securities made under a written statement, dated on or before 30 September 2012, until 30 November 2012. For further details about the FMA's intentions in respect of proportionate ownership schemes, please review our property law alert of 5 September 2012.

The FMA has determined that the following exemptions notices will expire and no similar exemption notice will be granted:

  • Securities Act (Amalgamations) Exemption Notice 2002
  • 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
  • Securities Act (Stock and Station Agents) Exemption Notice 2010
  • Securities Act (Superannuation Schemes – Summary of Financial Statements) Exemption Notice 2006.

The FMA will contact anyone who has indicated an interest in exemption notices in respect of which work is continuing and has made a submission or has asked to be added to the list of interested persons for a relevant notice.