As you are aware, the Securities Commission is currently undertaking a review of the class exemption notices expiring this year and those without expiry dates.

The Commission has now considered all exemptions notices included in the current review, along with all of the submissions we received on those exemption notice.

The Commission has confirmed the general policy of each of the exemption notices and approved their renewal in principle. In most cases the Commission has agreed to renew the exemption notices on the same terms or with only minor amendments. In a few cases, however, the Commission has considered that more substantive changes are required to the particular exemption notice. A division of the Commission is considering, and settling the terms of, these exemption notices.

We note that although the Commission has taken these steps, if you or your clients are continuing to rely on any exemption notice included in the review you should confirm that that the new exemption notice, or an appropriate amendment notice, has in fact been gazetted, and how any amendments may affect your or your clients' position.

The Commission agreed to renew the following exemption notices on their current terms for a period of five years:

(a)

the Securities Act (Advertisements Containing Investment Advice) Exemption Notice 2002;

(b)

the Securities Act (Audiovisual Advertisements) Exemption Notice 2002;

(c)

the Securities Act (Authorised Futures Contracts) Exemption Notice 2002;

(d)

the Securities Act (Banks) Exemption Notice 2002;

(e)

the Securities Act (Bloodstock) Exemption Notice 2002;

(f)

the Securities Act (Commercial Bill Dealers) Exemption Notice 2002;

(g)

the Securities Act (Continuous Debt Issues) Exemption Notice 2002;

(h)

the Securities Act (Contributory Mortgage) Regulations (Solicitors) Exemption Notice 1996;

(i)

the Securities Act (Employee Share Purchase Schemes - Unlisted Companies) Exemption Notice 2005;

(j)

the Securities Act (Estates and Interests in Australian Land) Exemption Notice 2002;

(k)

the Securities Act (Life Insurance Companies) Exemption Notice 2002;

(l)

the Securities Act (Overseas Companies) Exemption Notice 2002;

(m)

the Securities Act (Overseas Listed Issuers) Exemption Notice 2002;

(n)

the Securities Act (Overseas Takeovers by New Zealand Companies) Exemption Notice 2002;

(o)

the Securities Act (Sharebrokers) Exemption Notice 1984;

(p)

the Securities Act (Short Form Prospectus) Exemption Notice 2002;

(q)

the Securities Act (Stock and Station Agents) Exemption Notice 2002; and

(r)

the Securities Act (Unit Trust Certificates) Exemption Notice 2002.

We note that expiry dates will be incorporated into the Securities Act (Sharebrokers) Exemption Notice 1984 and the Securities Act (Contributory Mortgage) Regulations (Solicitors) Exemption Notice 1996.

The Commission agreed to renew the following exemption notices for a period of five years with relatively minor amendments:

(a)

the Securities Act (Amalgamations) Exemption Notice 2002;

(b)

the Securities Act (Australian Issuers) Exemption Notice 2002;

(c)

the Securities Act (Charitable and Religious Purposes) Exemption Notice 2003;

(d)

the Securities Act (Co-operative Companies) Exemption Notice 2002;

(e)

the Securities Act (Equity Warrant Issuers) Exemption Notice 2002;

(f)

the Securities Act (Friendly Societies) Exemption Notice 2002;

(g)

the Securities Act (Industrial and Provident Societies) Exemption Notice 2002; and

(h)

the Securities Act (Renewals and Variations) Exemption Notice 2002.

The amendments to these exemption notices include:

(a)

the revocation of the exemption from section 37A(2) of the Securities Act 1978 (which has been repealed) in various exemption notices;

(b)

the revocation of a transitional provision in the Securities Act (Amalgamations) Exemption Notice 2002, which is no longer required.

A more detailed explanation of the specific amendments to those exemption notices you have asked to be updated about is set out below.

The only amendment to be made to the Securities Act (Amalgamations) Exemption Notice 2002 is the revocation of the transitional provision, clause 16, which is no longer required. This transitional provision allowed offers to be made in accordance with a preceding exemption notice if the securities offered were allotted before 31 December 2002.

SECURITIES COMMISSION REVIEW OF CLASS EXEMPTION NOTICES - PROJECT REPORT