• About
• Publications
• Exemptions
• Notices
• What's new?
• International
• Speeches
• Information for investors
• Contact us
• Site map
• Home

Summary of

Securities Act (Assure New Zealand Limited) Exemption Notice 2002

2002/346

Gazetted on 21 October 2002
Expires on 30 September 2007

Background
Assure New Zealand Limited (Assure) proposes to offer participatory securities in "client income partnerships". These are a range of separate investment partnerships constituted under a common master deed. The beneficial interest in each partnership is divided into units, which will be offered to investors (the units).

Effects of exemption
Subscribers for the units will be able to apply in writing to the statutory supervisor, authorising ongoing allotments of the units, before the first allotment of the units. They may then continue to acquire securities in accordance with that initial application until the application is varied.

Assure will not be required to provide subscribers with certificates detailing their holdings within one month of each allotment. Assure will instead have to send a subscriber a certificate of holdings on request and at least once every six months.

The exemption
Assure is exempted, subject to conditions, from sections 37(3) and 54 of the Act in respect of units in an investment partnership constituted under a deed of participation between Assure and The New Zealand Guardian Trust Company Limited.

Conditions
The exemption from section 37(3) is subject to conditions that:

• Assure may not allot the securities unless the subscriber has, before the allotment, authorised the allotment in writing; and
• the investment statement clearly explains how a subscriber can vary or alter the subscriptions for the securities.

An allotment is authorised for the purpose of this exemption if the subscriber either:

• authorises the particular allotment; or
• authorises allotment to be made from time to time, and the particular allotment is made under that authority.

The exemption from section 54 is subject to the condition that Assure sends a subscriber on request and at least once every 6 months a statement showing the nature and ownership of that subscriber's holdings.

Reasons
The offer of units is planned to proceed on a continuous basis. The exemption removes the administrative difficulty created by section 37(3) which would require subscribers to authorise every allotment of units in writing. The conditions of exemption aim to inform subscribers how they may alter or vary their subscriptions and protects them in this regard.

The exemption from section 54 is in accordance with previous exemptions granted by the Commission. The condition reduces compliance costs for Assure and aims to keep investors informed, on a regular basis, as to their holdings.