New Zealand Legislation: Regulations

Statement of reasons

This notice comes into force on the day after its notification in the Gazette and expires on 30 December 2012.

The notice exempts the World Bank from sections 33(2), 37, 51, 52, 54, and 54B(3) of the Securities Act 1978 and from regulation 17 of the Securities Regulations 1983 in relation to debt securities issued by the World Bank.

The Securities Commission considers that the exemptions are appropriate for the following reasons:

• the offer documents (which are the most recent prospectus issued in accordance with United States federal law, the most recent World Bank information statement that includes the World Bank's audited annual financial statements, and a deed poll) will be made available on request to investors and prospective investors in New Zealand. These offer documents disclose relevant information (financial and otherwise) about the World Bank and the World Bank's offer of the relevant debt securities. This information, together with the investment statement provided under New Zealand law, will enable New Zealand investors to make an informed investment decision:

• the exemption from the requirement in regulation 17 of the Securities Regulations 1983 that directors must personally complete a certificate in respect of an advertisement is granted in recognition of the unique organisational structure of the World Bank under which the directors are located in different parts of the world. In these circumstances, it would be impractical and difficult to require 2 directors to complete the certificate. The conditions to which the exemption is subject require that the certificate be signed by 2 directors, or by 1 director and an executive officer authorised by the directors, or by 2 executive officers authorised by the directors:

• in these circumstances, the cost of full compliance with the Securities Act 1978 and Securities Regulations 1983 would outweigh any additional benefit such disclosure would provide.