Securities Amendment Regulations 2007
The regulations amend the Securities Regulations 1983 to provide additional clauses that are deemed to be included in the trust deeds of finance companies. The finance companies affected are issuers that continuously offer debt securities to the public and either lend money or provide financial services, but that are not a building society, credit union, or co-operative company. The new deemed clauses apply to both existing and future trust deeds.
Under the new clauses, finance companies must:
- provide regular reports to the trustee about the issuer's financial position and to regularly certify compliance with the trust deed; and
- keep the trustee informed of matters relevant to the trustee's duties; and
- have the borrowing group's half-yearly financial statements audited or, if that requirement is waived by the trustee, have them reviewed; and
- provide the trustee with copies of the borrowing group's annual and half-yearly financial statements; and
- consult the trustee on the appointment of auditors and inform the trustee if an auditor resigns or declines appointment or reappointment; and
- include specific conditions in the terms of appointment of auditors, which will give auditors responsibilities vis-à-vis the trustee.
The new clauses will also give the trustee power to:
- appoint an independent auditor to audit the financial statements of the borrowing group; and
- appoint an expert to assist the trustee to determine the true financial position of an issuer, and recover the fees and expenses from the issuer.
Securities Amendment Regulations 2007
The regulations amend the Securities Regulations 1983 to provide additional clauses that are deemed to be included in the trust deeds of finance companies.
Back to Top