Financial Markets Conduct (Kuaotunu Camp Ground (2008) Limited) Exemption Notice 2023

Summary: The Financial Markets Conduct (Kuaotunu Camp Ground (2008) Limited) Exemption Notice 2023 exempts Kuaotunu Camp Ground (2008) Limited (Kuaotunu) from Part 7 of the Financial Markets Conduct Act 2013 (Act).

Kuaotunu is a New Zealand company, incorporated in 2008 for the primary purpose of providing shareholders with occupancy rights to sites at a campground located in Kuaotunu Beach in the Coromandel. The shares offered by Kuaotunu are not in the nature of financial product investments, however, Kuaotunu remain an FMC reporting entity by virtue of issuing shares which are nevertheless regulated products.

The exemption applies with respect to a particular accounting period where:

• Kuaotunu is an FMC reporting entity by virtue of issuing shares, which have the principal purpose of providing shareholders with occupation rights to sites at the Kuaotunu campground but are nevertheless regulated products; and
• the total revenue of Kuaotunu (and any subsidiaries) for that accounting period does not exceed $2 million.

The exemption is subject to a condition (which is set out in full in the Notice) that a prescribed warning statement be included at the front of every document provided to shareholders that contains Kuaotunu’s financial statements or summary financial statements for that accounting period.

The key reasons for granting the exemption (as set out in full in the Statement of Reasons in the Notice) are that –

• The exemption removes unnecessary compliance burdens by preventing the regulation by financial markets law of an activity that is not a financial product investment or financial markets activity;
• where Kuaotunu’s revenue (plus the revenue of any subsidiaries) for a particular accounting period is $2 million or less, the financial risk to shareholders is low, and the costs of complying with Part 7 of the Act would be disproportionately high and would outweigh any benefit to shareholders;
• the financial reporting and auditing requirements of the Companies Act 1993 will continue to apply, which will require Kuaotunu to prepare financial statements in accordance with generally accepted accounting principles and have those statements audited unless shareholders agree otherwise;
• it is desirable to grant the exemption in order to promote the purposes of the Act, specifically by avoiding unnecessary compliance costs while continuing to ensure the provision of timely, accurate and understandable financial information to assist decision making by shareholders.

Download the Financial Markets Conduct (Kuaotunu Camp Ground (2008) Limited) Exemption Notice 2023