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10 December 1999

News Release

GREAT BRITAIN COLLECTIVE INVESTMENT SCHEMES

New Zealanders will have more opportunity to invest in global securities markets following an exemption granted by the Securities Commission which comes into force today.

The exemption allows two types of collective investment scheme, operating from Great Britain, to offer securities in this country without a New Zealand registered prospectus and investment statement.

The schemes are authorised unit trusts and open-ended investment companies.

These schemes may use offer documents from Great Britain when offering in New Zealand but need to comply with specific conditions. They must:

• provide certain information particular to New Zealand investors;
• agree to submit to the jurisdiction of the New Zealand courts;
• deposit documents with the Registrar of Companies;
• appoint a New Zealand agent for service; and
• provide an annual report to the Commission.

This exemption is based on the Commission's general policy for considering exemptions for overseas collective investment schemes. The policy was developed earlier this year after extensive public consultation. The exemption is similar to the exemption for Australian Registered Managed Investment Schemes.

Collective investment schemes using the exemption must be authorised and regulated by the Financial Services Authority in the United Kingdom.

While investors, as always, need to be aware of the potential added risk of investing in overseas products, this exemption provides an avenue for investment within the broad framework of New Zealand securities law.

This exemption was notified in yesterday's Gazette, and comes into force today.

John Farrell
Chief Executive

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