Financial Markets Conduct (Stride Property Group) Exemption Notice 2022

The Financial Markets Conduct (Stride Property Group) Exemption Notice 2022 allows Stride Property Limited (SPL) and Stride Investment Management Limited  Stride (SIML), as stapled entities (Stride Property Group), to prepare consolidated financial statements for the purposes of subpart 3 of Part 7 of the Financial Markets Conduct Act 2013 (the Act).  In particular, the notice exempts SPL from subpart 3 of Part 7 of the Act to the extent that the subpart requires a FMC reporting entity that has 1 or more subsidiaries to prepare group financial statements. This notice also exempts SIML from subpart 3 of Part 7 of the Act to the extent that the subpart requires an FMC reporting entity to prepare financial statements in relation to the entity. The notice also exempts SPL and SIML from the following provisions of the Act:

• sections 455(1)(c) and 455(1)(d) which require accounting records to be kept that enable an FMC reporting entity to ensure that its financial statements comply with generally accepted accounting practice and that those statements are readily and properly audited; and
• sections 461D and 461G which require financial statements of every FMC reporting entity to be audited by a qualified auditor and impose certain obligations regarding the auditor’s report in respect of those financial statements.

The exemption is subject to conditions that effectively recreate the relevant provisions of subpart 3 of Part 7 from which each of SPL and SIML are exempt, albeit by reference to financial statements prepared in respect of the Stride Property Group.