23 May 2000

NEWS RELEASE

Discussion Paper - Retirement Villages

The Securities Commission has released a brief discussion paper on the way the Securities Act 1978 applies to offers to the public of interests in resident funded retirement villages.

At present there is uncertainty as to whether the compliance provisions in Part II of the Act apply to all of these offers. The Commission regards it as undesirable that this uncertainty should continue.

As an interim measure, the paper proposes an amendment to the law to empower the Government by regulation to make these offers subject to the disclosure and supervisory provisions of Part II of the Securities Act, in circumstances where they are not currently subject to these provisions.

The Commission also believes it is now timely for the Government to consider the recommendations of the Law Commission that all retirement village schemes should be made subject to the same rules of law.

Comment is invited on the proposal for a new regulatory power and should be made to the Commission, P O Box 1179, Wellington, by 12 July 2000.

The discussion paper can be viewed and printed from our web site www.sec-com.govt.nz. Take the direct link from the home page.

Further information:

Catherine Chapman
Communications Manager

Phone (04) 471 7659