Securities Act (Venture Capital Schemes)

Securities Act (Venture Capital Schemes) Exemption Notice 2008

This notice enables scheme administrators to operate venture capital schemes to match interested investors with small and medium businesses wishing to raise funds.

Key exemptions in the notice allow offers of equity securities and participatory securities to be made by the registered businesses through venture capital schemes without the need to:

• register a prospectus
• meet the minimum subscription provisions
• in the case of participatory securities, have a deed of participation and statutory supervisor.

The notice also provides some exemptions from the usual advertising requirements.

Offers can be made to prospective investors registered with scheme administrators, and 'eligible persons' as defined by the Securities Act 1978.

A copy of the notice is available at the New Zealand legislation site.

Venture capital schemes must be operated according to a code of practice. This code sets out the requirements about how investors can be introduced to businesses seeking funds, and how the securities can be advertised, offered and allotted.

Scheme administrators are identified in the Schedule to the Notice. See how to apply for the designation of scheme administrator - includes information on what will be considered in assessing applications.