The FMC Act offer regime is simpler and more efficient than the previous Securities Act regime. Most issuers and offerors will be able to make offers under either:
However in some cases businesses may encounter difficulties offering financial products. In those circumstances, an exemption from a regulatory or disclosure requirement may be appropriate. For example:
- where the standard offer information, or ongoing compliance, requirements are not effectively tailored for a unique financial product
- where specific information usually required in an offer document can’t be obtained, but alternative information that can be provided instead
- offers made in similar circumstances to offers under the Schedule 1 exclusions, or an overseas recognition regime, which for technical reasons cannot rely on statutory relief.
If you think there may be a basis for relief from the standard regulated offers regime, and that is not provided for by a Schedule 1 exclusion, consider:
- Can you rely on a current exemption?
- Are you interested in an exemption under consideration by the FMA?
- Do you have a sound basis to apply for a new exemption?
See our Consultation section or read our Regulatory update to find out more on the work we are doing to support businesses with FMC Act matters. In some cases, as we may be in the process of finalising any exemptions. If you cannot see an update please contact us at exemptions@fma.govt.nz
We have wide powers to exempt persons (or types of persons) or transactions (or types of transactions) from some requirements in the FMC Act and associated regulations. Any exemptions we grant must promote one or more of the purposes of the FMC Act regime:
- confident and informed participation in financial markets
- development of fair, efficient and transparent financial markets
- to provide for timely, accurate, and understandable information to assist investment decisions
- to ensure appropriate governance arrangements apply to financial products and services that allow for effective monitoring and reduce governance risks
- to avoid unnecessary compliance costs
- to promote innovation and flexibility in the financial markets Additionally the extent of the exemption must not be broader than necessary to address the matters than gave rise to it.
Additionally, the extent of the exemption must not be broader than necessary to address the matters than gave rise to it.
