Financial Markets Conduct (Small Co-operatives) Exemption Notice 2022

Summary: This exemption notice provides co-operative companies and industrial and provident societies with a lighter regulatory compliance pathway. The notice applies to these entities:

• where offers of co-operative shares or certain equity securities where investors have, or will have, paid no more than $10,000 in total, it allows a substituted PDS, provides relief from record-keeping and register auditing requirements and from financial reporting and auditing requirements).
• where the entity (and any subsidiaries) had revenue of $5 million or less in the relevant accounting period, it provides relief from FMC financial reporting and auditing obligations.

The exemption thresholds have been increased from $5,000 and $2 million respectively.

Note that irrigation schemes which are registered co-operative companies can rely on this notice according to its terms. Irrigation schemes that are registered companies should refer to the FMC (Irrigation Companies) Exemption Notice 2022 for the equivalent relief.