Guide for Trans-Tasman Mutual Recognition of Securities
17 March 2011
GUIDE FOR TRANS-TASMAN MUTUAL RECOGNITION OF SECURITIES OFFERINGS UPDATED
The Australian Securities and Investments Commission (ASIC) and New Zealand Securities Commission have jointly published updated guidance for Australian and New Zealand issuers offering shares, debentures or interests in managed or collective investment schemes in both countries. The guide explains the requirements under the mutual recognition of securities offerings scheme (MRSO) and the role the regulators play in relation to an offer.
The guide also alerts issuers to the specific sections of Australian and New Zealand law that will continue to apply when offers are made under the MRSO, such as the prohibition of door-to-door selling in New Zealand and the securities hawking laws in Australia.
Many of the updates are based on feedback received from the market and are aimed at assisting issuers using the scheme. Key updates provide:
• more detailed
guidance by inserting references to underlying statutory
• information relating to relevant forms and lodgement processes;
• comment on the applicability of dispute resolution schemes;
• reference to certain relief powers that enable each regulator to declare a recognised offer where certain requirements are not met by issuers; and
• more guidance on the offers that can be recognised under the scheme where the issuer or offer has obtained relief in its home jurisdiction.
The MRSO enables issuers of securities to use one disclosure document to offer shares, debentures, or managed or collective investment schemes to investors on both sides of the Tasman, subject to meeting certain requirements. The scheme has proven to bring significant cost savings for issuers offering securities and also benefits investors by providing them with a wider range of investments. The scheme was first introduced in June 2008 as a significant step towards achieving a single economic market.