Financial Markets Conduct (Employee Share Purchase Schemes) Exemption Notice 2021

Summary:  The Financial Markets Conduct (Employee Share Purchase Schemes) Exemption Notice 2021 replaces the Financial Markets Conduct (Employee Share Purchase Scheme ) Exemption Notice 2016 that expires on 6 August 2021. View the Financial Markets Conduct (Employee Share Purchase Schemes) Exemption Notice

The exemption continues for a further five years, relief in respect of certain offers of financial products that are made under or in connection with employee share purchase schemes on the same terms and conditions as the previous notice.

The notice exempts certain offers of equity securities that are made under, or in connection with employee share purchase schemes from disclosure requirements under Part 3 of the FMC Act. It also provides that debt securities offered in connection with the acquisition of equity securities under an overseas issuer’s employee share purchase scheme (savings scheme securities) are exempted from disclosure requirements under Part 3 and exempted from governance requirements under Part 4 of the FMC Act.  In addition, these offers are declared to ‘not be regulated offers’ with the result that financial reporting and other obligations that would otherwise apply to such offers do not apply.

The offers include offers made to trusts and relatives and offers of savings scheme securities.   The notice also clarifies the operation of the 10% limit on the number of equity securities issued under and employee share purchase scheme