|Name of notice||Financial Markets Conduct (Shares in Investment Companies) Designation Amendment Notice 2017|
|Gazette Notification Date||2017-06-08|
|Date In Force||2017-06-09|
|Act||Financial Markets Conduct Act 2013|
|Type||Designation Amendment Notice|
9 June 2017
On 19 May a class designation came into effect which designates certain newly issued shares in investment companies as managed investment products (MIPs). The designation does not apply if the shares are quoted on the main board of the NZX.
We decided to amend the designation so that it also does not apply to shares quoted on the ASX. This is because the voting, quorum and other governance requirements that apply to ASX listed companies mean that these shares should retain equity-like characteristics (and not be in economic substance MIPs). This amendment came into effect on 9 June 2017.
Unlisted Australian issuers and other overseas issuers offering shares into New Zealand that meet the criteria for designation will need to consider the impact of the designation on the requirements that will apply to their offers and the ongoing obligations arising on the issue of shares.
In particular, shares to which the designation applies will not be eligible to be offered into New Zealand by unlisted Australian issuers in reliance on the mutual recognition of securities offerings regime (MRSO).
We have updated our information sheet to refer to the exclusion for ASX shares and to include a section for Australian and other overseas issuers.