The Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Notice 2021

Summary: The Financial Markets Conduct (Overseas Banks Offering Simple Debt Products) Exemption Notice 2021 applies to banks that are licensed, registered, or otherwise authorised to carry on banking business in certain overseas jurisdictions that have been determined by the FMA to have regulatory oversight standards that are broadly equivalent to those that apply in New Zealand and that have signed the International Organization of Securities Commissions Multilateral Memorandum of Understanding. The effect of the notice is that these overseas banks may, under certain circumstances, offer call debt securities and fixed term deposit products (simple debt products) to New Zealand investors through a lighter compliance path that is similar to that available to New Zealand registered banks. 

If the exemptions in this notice apply, overseas banks will not need to comply with the disclosure requirements (including preparation of a PDS) under Part 3 of the Financial Markets Conduct Act 2013 (the FMC Act) when offering simple debt products, or with the governance requirements under Part 4 of the FMC Act (including the need for a trust deed and licensed supervisor) in respect of those products.  In addition, offers of simple debt products made in reliance on the notice will not be regulated offers. This means that legislative requirements that apply to regulated offers, such as financial reporting obligations under Part 7 of the FMC Act, will not apply (unless there is some other reason why they apply). Conditions apply.