11 August 2021

Financial Markets Conduct (Squirrel Investment Funds) Exemption Notice 2021

Name of Notice Financial Markets Conduct (Squirrel Investment Funds) Exemption Notice 2021
Gazette Notification Date 2021-08-09
Date In Force 2021-08-06
LI Number N/A
SL Number
Act Financial Markets Conduct Act 2013
Type Individual Exemption Notice
Expiry Date 2026-08-05

Summary: The exemptions in this notice allow Implemented Investment Solutions Limited (IIS), acting as the licensed manager for funds established under Squirrel Investment Funds, a managed investment scheme (Squirrel Funds), from clauses 53(1)(c)(viii), 53(1)(j)(i), 54(1)(a)(i) and (d) and 70(1)(a)(i) of Schedule 4 of the Financial Markets Conduct Regulations 2014. Download the notice pdf.

Under those provisions, IIS would be required to provide or update the following information in either or both of the register entry for the offer and each quarterly fund update:

  • a list of the 10 highest-value individual assets of the fund and any related underlying fund and certain information against that list, including the name of the asset; and
  • a complete list of the individual assets of the fund and any related underlying fund and certain information against that list, including the name of the asset.

Where individual assets are loans (including loans in a related underlying fund), the description of that asset is required to include the name of the borrower. The primary assets of the Squirrel Funds are intended to be investment interests in funds of a related wholesale managed investment scheme called Squirrel Wholesale Investment Funds (the Wholesale Scheme). The Wholesale Scheme funds intend to invest in loans made to individuals or closely held entities through a peer-to-peer lending platform operated by Squirrel Money Limited (Platform). By naming the borrowers, IIS will be directly or indirectly identifying individuals who use the Platform to borrow money. This notice exempts IIS, in respect of the Squirrel Funds, from the requirement to provide the name of such borrowers, subject to the conditions set out in clauses 6 and 7 of the notice. The conditions require IIS to provide alternative information with respect to loans that a Wholesale Scheme fund has an interest in, including details about:

  • the type and term of loans;
  • any security for the loans;
  • the risk profile of the loans;and
  • impaired loans.

While this notice exempts IIS from providing the name of the borrower, there is no exemption from the requirement to disclose all material information.