Financial Markets Conduct (Climate Statements – Stride Property Group) Exemption Notice 2023

The Financial Markets Conduct (Climate Statements – Stride Property Group) Exemption Notice 2023 (Notice) exempts Stride Investment Management Limited (SIML) and Stride Property Limited (SPL), which are part of the stapled group, comprising SIML, SPL and subsidiaries of SPL (Stride Property Group or SPG) from certain provisions of Part 7A of the Financial Markets Conduct Act 2013 (Act). 

The Notice permits SPG to prepare consolidated climate statements for the purposes of Part 7A of Act instead of each of SIML and SPL having to prepare individual climate statements.

The Notice is subject to a number of conditions including that SIML and SPL must ensure that their climate statements are prepared on a consolidated basis in respect of the Stride Property Group, the shares of SIML and SPL must remain stapled and that SIML and SPL must ensure that they have the same balance date.

The key reasons for granting of the exemption (as set out in full in the Statement of reasons in the Notice) are that -

• shares of SIML and SPL are stapled and traded as the single Stride Property Group on the NZX Main Board of NZX Limited and  SIML and SPL operate as a single economic enterprise with shareholders of SIML and SPL being identical.  The climate-related performance of the Stride Property Group as a whole, rather than the separate underlying entities, is therefore of particular relevance to shareholders and potential investors.  Also, the nature of interests in SIML, SPL and the Stride Property Group are such that climate reporting requirements need to be tailored to ensure that shareholders and potential investors receive meaningful disclosure;
• it is desirable to grant the exemption in order to promote the purposes of the Act, specifically, it –
  • removes unnecessary compliance costs, namely the preparation of two sets of climate statements when consolidated climate statements will provide more meaningful information in respect of the group and the individual entities comprising it, and thereby promotes flexibility in financial markets by facilitating the efficient operation of the Stride Property Group structure;
  • promotes the confident and informed participation of shareholders and potential investors of the Stride Property Group in the financial markets;
  • promotes greater transparency in relation to the Stride Property Group, thereby contributing to the development of fair, efficient, and transparent financial markets;
  • provides timely, accurate, and understandable information to shareholders and potential investors to assist them to make decisions relating to the Stride Property Group.

Download the Financial Markets Conduct (Climate Statements – Stride Property Group) Exemption Notice 2023