Proportional Ownership – An Accident Waiting To Happen

 

And not before time…..

FMA proposes overhaul of rules around property proportionate ownership schemes
31 August 2012                           

FMA proposes overhaul of rules around property proportionate ownership schemes

The Financial Markets Authority has today announced its proposal to overhaul the class exemption notice for Real Property Proportionate Ownership Schemes.
The current Securities Act exemption notice expires on 30 September and FMA does not propose to grant further similar exemptions.
Instead, all issuers will be required to register a prospectus and investment statement, and appoint a statutory supervisor. FMA intends to issue guidance to assist market participants with the disclosure requirements of the prospectus and investment statement as they relate to these schemes.
“There are significant risks particular to Real Property Proportionate Ownership Schemes that need to be better understood,” said FMA Head of Primary Regulatory Operations Sue Brown. “These changes will provide investors with the information they need to make informed decisions before investing in these schemes.”
The changes will come into effect on 1 October 2012.
Offers commencing before then will be able to use the existing notice.

link:

FMA website

 

And more…

No exemption for property schemes
31/08/2012

The Financial Markets Authority wants to scrap an exemption that currently allows certain property investment schemes to avoid the strictures of the Securities Act.
Unlike formal property syndicates, where investors buy shares in a company, real property proportionate ownership (RPPO) schemes are lightly regulated.
The schemes involve investors brought together by a scheme manager to buy real estate, often marketed through a network of financial advisers and real estate agents.
Today the FMA announced a proposal to overhaul the Securities Act class exemption notice for the RPPO schemes, which expires on September 30.
If the proposal goes ahead, issuers will be required to supply a prospectus and investment statement to investors, as well as appoint a statutory supervisor.
The FMA said it had received a “significant number” of complaints relating to property schemes, covering issues including poor disclosure, bad management and inadequate governance.

Link:

http://www.stuff.co.nz/business/7588610/No-exemption-for-property-schemes

Posted in News & Articles | Leave a reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>