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• Other Issues for Australia
  • Hawking and Alternative Dispute Resolution Requirements

New Zealand

It is envisaged that New Zealand would exempt offers under the mutual recognition regime from all of Part II of the Securities Act 1978 (NZ), except for:

• Section 35: Restrictions on door-to-door sales
• Section 38B: Prohibition of advertisements
• Section 58: Criminal liability for misstatement in advertising or registered prospectus

New Zealand will also exempt offers under the mutual recognition regime from the provisions of the Securities Regulations 1983 (NZ).

Australia

It is envisaged that Australia would exempt offers under the mutual recognition regime from the following provisions of the Corporations Act 2001 (Cth).

In relation to shares, options to acquire securities and equitable interests in securities:

• Chapter 6D: Fundraising
• Section 1017F: Confirming transactions¹⁷

In relation to debentures:

• Chapter 2L: Debentures
• Chapter 6D: Fundraising
• Section 1017F: Confirming transactions

In relation to managed investment schemes:

• Chapter 5C: Managed investment schemes
• Part 7.6: Licensing of providers of financial services
• Part 7.7: Financial services disclosure
• Part 7.8: Other provisions relating to conduct etc connected with financial products and financial services, other than financial product disclosure
• Part 7.9: Financial product disclosure and other provisions relating to issue and sale of financial products, except the short selling provisions (sections 1020B, 1020C)

Other Issues for Australia

Hawking and Alternative Dispute Resolution Requirements

It is proposed that the:

• current prohibitions on hawking and requirement for alternative dispute resolution arrangements would not apply to an issuer under the proposed mutual recognition regime (as indicated above); and
• in the place of the current prohibitions, a prohibition on hawking and the Australian requirements for an issuer to have alternative dispute resolution arrangements would be included in the mutual recognition regime as ongoing requirements.

¹⁷Part 7.6 of Chapter 7 is not disapplied in relation to offers of shares, so investment companies that are "dealing" in their own shares will require an Australian Financial Services Licence by virtue of subsection 766C(5).