However, in some cases, businesses may encounter difficulties offering financial products. In those circumstances, an exemption from a regulatory or disclosure requirement may be appropriate. For example:
where the standard offer information, or ongoing compliance, requirements are not effectively tailored for a unique financial product
where specific information usually required in an offer document can’t be obtained, but alternative information that can be provided instead
offers made in similar circumstances to offers under the Schedule 1 exclusions, or an overseas recognition regime, which for technical reasons cannot rely on statutory relief.
If you think there may be a basis for relief from the standard regulated offers regime, and that is not provided for by a Schedule 1 exclusion, consider:
Can you rely on a current exemption?
Are you interested in an exemption under consideration by the FMA?
Do you have a sound basis to apply for a new exemption?
We have wide powers to exempt persons (or types of persons) or transactions (or types of transactions) from some requirements in the FMC Act and associated regulations. Any exemptions we grant must promote one or more of the purposes of the FMC Act regime:
confident and informed participation in financial markets
development of fair, efficient and transparent financial markets
to provide for timely, accurate, and understandable information to assist investment decisions
to ensure appropriate governance arrangements apply to financial products and services that allow for effective monitoring and reduce governance risks
to avoid unnecessary compliance costs
to promote innovation and flexibility in the financial markets.
Additionally, the extent of the exemption must not be broader than necessary to address the matters that gave rise to it.
Trusts Act requirements
We also have the power under the FMC Act to grant exemptions from Trusts Act 2019 provisions that apply to FMC Act trusts relating to debt securities or managed investment schemes. These trusts are regulated by the FMC Act but some provisions in the Trusts Act also apply. We are required to have regard to the purpose and principles of the Trusts Act as well as the statutory test for FMC Act exemptions described above before granting such an exemption.