FMA ponders PDS in Te Reo
Tuesday, April 17th 2018, 5:10PM
The FMA is seeking submissions on its proposal to enable companies offering investments to publish product disclosure statements (PDS) in both te reo Māori and English.
Under the current regulations, companies offering investments are effectively prevented from providing a PDS in more than one language due to prescribed length limits. These limits were imposed to address issues with disclosure documents prepared under the Securities Act.
An exemption would exempt issuers from these length limits. To qualify for the exemption, the two languages would need to accurately and fully reflect each other. The length limit would remain in force for the English part of the PDS.
Nick Kynoch, FMA general counsel said, “Providing documents in both English and te reo Māori has the potential to improve engagement and therefore effective decision-making by investors who are more comfortable when engaging with content provided in te reo Māori.”
The consultation paper also sets out potential risks and ways these could be mitigated. For example, there could be a discrepancy between the two languages in the PDS. This could be mitigated by requiring certification that the two languages accurately and fully reflect each other.
Submissions close on May 17.
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