Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2021

This exemption provides relief for overseas issuers that have a primary listing on a market in a high quality jurisdiction from certain financial reporting and auditing obligations of the FMC Act.  It exempts them from having to prepare financial statements in NZ GAAP and having them audited by a New Zealand qualified auditor in circumstances where we are comfortable with their home jurisdiction financial reporting requirements.  The Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2021 will replace the Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2016 when it expires on 3 November 2021 and will continue, for a further five years, relief on the same terms with minor amendments.

The effects of the exemption are:

• such issuers are allowed to use an approved GAAP and use a qualified auditor in their home jurisdiction to prepare their group or entity financial statements;
• the group or entity financial statements do not have to be dated and signed by two directors if that is not a requirement in the home jurisdiction of the issuer;
• such issuers must still prepare New Zealand business financial statements, and these may be prepared in accordance with either the same approved GAAP or NZ GAAP and must be audited by a New Zealand or Australian auditor, or a qualified auditor in their home jurisdiction; and
• financial statements must be in English or accompanied by an accurate English translation.