Securities Act (Amalgamations)

The notice amends the Securities Act (Amalgamations) Exemption Notice 2002 (the principal notice).

Effects of the exemption

The amendment replaces a condition that relates to forecast financial statements with a condition that relates to prospective financial statements. The amended condition requires prospective financial statements of the amalgamated company to comply with Financial Reporting Standard No 29 (which relates to prospective financial information).

The amendment

Clause 11 of the principal notice is revoked and a new clause is substituted. The new clause makes the exemptions in clauses 5 and 7 of the principal notice subject to a new condition relating to prospective financial statements.

Reasons

The amendment allows an amalgamated company that has amalgamated in accordance with Part XIII of the Companies Act 1993 the choice of providing financial information in the registered prospectus either as a "projection" or as a "forecast".

The amendment aligns the financial reporting requirements of the Amalgamations Exemption Notice 2002 with those of the Securities Regulations 1983.

The amendment aligns the provision of prospective financial information by issuers of the amalgamated company with that of the Financial Reporting Standard 29 Prospective Financial Information (FRS-29).