Employer Superannuation Schemes Exemption Amendment
We are delighted to advise that ASFONZ has been successful in having the Securities Act (Employer Superannuation Schemes) Exemption Notice 2004 renewed for a further period of five (5) years.
The original Employer Superannuation Scheme Exemption Notice was put in place on 23 July 2004 following a formal exemption application from ASFONZ.
Its purpose was to overcome difficulties with the (then) very recently enacted statutory prospectus exemption facility for employer superannuation schemes in sections 5A to 5C of the Act. In brief, employer superannuation schemes that are eligible for the exemption are not required to maintain a prospectus, provided certain disclosures are made in their investment statements and annual reports.
When applying for the renewal ASFONZ told the Securities Commission that:-
"As far as ASFONZ is aware:
(a) almost all employer-based stand-alone superannuation schemes which are open to new member admissions, and are employer superannuation schemes as defined in clause 4(1) of the ESS Exemption Notice, utilise the exemption (and have done so since its inception); and
(b) no employer-based superannuation schemes utilise (or have ever utilised) the statutory prospectus exemption facility in sections 5A to 5C of the Securities Act 1978 (the Act).
The ASFONZ view is that the statutory prospectus exemption is practically unworkable in that it is unrealistic to expect that any schemes still in existence would be prepared to make the changes necessary to allow compliance with that exemption."
In granting the exemption renewal, the Securities Commission noted that:-
- The purpose of section 5A of the Securities Act 1978 is to grant an exemption to employer superannuation schemes from the requirement to have a registered prospectus where the costs of the scheme are met by the employer;
- Some schemes meet this policy purpose, but are unable to comply with the terms of the statutory exemption for various technical reasons;
- It is consistent with the purpose of the Securities Act 1978 to grant an exemption to extend the effect of the exemption in section 5A of the Act to these schemes, and to schemes that previously enjoyed the benefit of the section 5 (2E) exemption for small employer superannuation schemes before the Securities Amendment Act 2004 came into force.
ASFONZ had been hopeful of extending the scope of the exemption relief to a wider range of workplace schemes than was the case under the original exemption notice. Unfortunately, fitting a wider range of schemes within the policy framework of the Securities Act was not able to be achieved at this time. We are maintaining a dialogue with the Commission to explore prospectus relief options for a wider range of workplace schemes, and will update the membership on further developments in due course.
A copy of the Securities Act (Employer Superannuation Schemes) Exemption Notice 2009 can be obtained by clicking here.
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