Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette and expires on 31 January 2014, exempts the directors of Australian Scholarships Group Friendly Society Limited (a company incorporated in Australia) from the requirement to include, in its annual financial statements, statements of cash flows in respect of benefit funds that have not been, and are not, offered in New Zealand.

The Securities Commission considers that it is appropriate to grant the exemption because—

• there will not be any significant detriment to subscribers in New Zealand because the exemption only applies in respect of benefit funds offered in Australia. Australian Scholarships Group Friendly Society Limited will still be required to include in its annual financial statements separate statements of cash flows for each benefit fund offered to New Zealand subscribers; and

• the extent of the exemption is not broader than what is reasonably necessary to address the matters that gave rise to the exemption because New Zealand subscribers will still have full access to cash flow information in respect of the benefit funds in which they have invested.