Financial Markets Conduct (Denarau Villas) Exemption Notice 2021

Summary: The Financial Markets Conduct (Denarau Villas) Exemption Notice 2021 provides relief to Denarau Villas Limited from certain governance, licensing and supervision requirements under the FMC Act. Download the notice PDF.

These exemptions are subject to certain conditions, the main effects of the notice are as follows:

• Denarau Villas Limited will manage the Denarau Villas Scheme (the Scheme) without the need to be licensed by the FMA subject to the conditions that no new managed investment products will be offered or issued in respect of the Scheme and scheme participants are the only shareholders of the manager of the Scheme
• The supervisor of the Scheme will not be required to hold scheme property subject to the condition that the manager continues to hold scheme property (to the extent that the property is not held by scheme participants)
• The manager of the Scheme will be the custodian for the purposes of the scheme but does not (subject to meeting various conditions) need to meet independent custody requirements, carry out daily cash reconciliations, or obtain an annual assurance engagement.