Financial Markets Conduct (The City of London Investment Trust plc) Exemption Notice 2022

The Financial Markets Conduct (The City of London Investment Trust plc) Exemption Notice 2022, exempts The City of London Investment Trust plc (the exempt entity) from certain financial reporting obligations in Part 7 of the Financial Markets Conduct Act 2013 (the Act), including—

• section 460 of the Act to the extent that the section requires the financial statements that are prepared to comply with New Zealand generally accepted accounting practice (NZ GAAP) and to be dated and signed by 2 directors (or, if the entity has only 1 director, by that director); and
• sections 461D and 461G of the Act (which relate to auditing).

The exemptions are subject to conditions that require the exempt entity to prepare financial statements that comply with the financial reporting requirements of the United Kingdom (the UK).  The main effects of the exemptions for the exempt entity are as follows:

• the financial statements that are prepared will comply with generally accepted accounting principles in the UK (UK GAAP) rather than NZ GAAP;
• those financial statements will be audited by an auditor who is qualified or permitted under the laws of the UK to give an opinion as to whether the financial statements comply with UK GAAP (a UK approved auditor);
• if the exempt entity has a New Zealand business, those financial statements will be accompanied by separate financial statements for the New Zealand business that comply with NZ GAAP or UK GAAP; and
• those New Zealand business financial statements (if any) will be audited by a qualified auditor (as that term is defined in the Act) or a UK approved auditor, and if those statements are prepared in accordance with NZ GAAP, that audit must be carried out in accordance with New Zealand auditing and assurance standards.