Cash Management and Fixed Interest Rates

The Craigs Investment Partners Cash Management Account is a multi-currency account offering attractive returns and flexibile investing for your money. All your cashflow requirements can be met through this one account. You can receive dividends and income from your other investments directly into your account and electronically settle your share and fixed interest purchases and sales, all while earning a competitive return.

Download our current rate sheets

Cash Management Account Rate Sheet

Impact of the Non-Bank Deposit Takers Regime

Pursuant to the Reserve Bank of New Zealand Amendment Act 2008, the Reserve Bank of New Zealand Act 1989 (the “RBNZ Act”) was amended to include Part 5D thereof (the “NBDT Regime”) which relates to the regulation of non-bank deposit takers.

The Company is a non-bank deposit taker for the purpose of the NBDT Regime.

Under the NBDT Regime, the Company is:

• from 1 March 2010, required to have a current rating of its creditworthiness that complies with section 157I of the RBNZ Act (the “Credit Rating Requirement”); and
• expected, from September 2010, to be required to maintain a minimum capital ratio determined in accordance with the NBDT Regime (the “Capital Ratio Requirement”), (together the “NBDT Requirements”).

The obligations of the Company as to the payment of Principal and payment of interest in relation to Deposits shall only be available out of the assets available for each class of Deposits and depositors do not have recourse to the general assets of the Company (or the assets referable to assets of a different class of Deposits). As presently structured, depositors only have recourse to the relevant assets and, accordingly, it is the view of the Company that:

• the credit standing (and therefore credit rating) of the Company is not directly relevant to the credit risk being taken by depositors; and
• the maintenance of a minimum capital ratio determined in accordance with the NBDT Regime will be of no benefit or relevance to depositors.

On 23 December 2009, the Company sought an exemption from the NBDT Requirements from the Reserve Bank of New Zealand. The Company has been advised by the Reserve Bank of New Zealand that it will not grant the Company a permanent exemption from the NBDT Requirements. However:

• the Company has been granted a temporary exemption (the “Temporary Exemption”) from the Credit Rating Requirement; and
• it is expected that the Reserve Bank will grant the Company a temporary exemption from the Capital Ratio Requirement until 31 December 2010 as and when the Capital Ratio Requirement comes into force,

to allow sufficient time for it to undertake an orderly wind down of Deposits and Accounts.

• The Company does not have a current rating of its creditworthiness under section 157I of the RBNZ Act.
• Pursuant to the terms of the Temporary Exemption, the Company is exempted from section 157I of the RBNZ Act until 31 December 2010.
• The Company is able to continue to accept call Deposits until the expiration of the Temporary Exemption.
• Craigs Investment Partners Limited is in the process of putting into place arrangements to ensure that depositors have a suitable replacement cash management product or products that complement their accounts held with Craigs Investment Partners Limited.
• As a part of that transition process, the Company is in the process of winding down its debt security product.

The Company does not consider that the terms of the Temporary Exemption will materially affect returns to depositors. It is envisaged comparable replacement cash management products will be established and available to Craigs Investment Partners Limited’s clients prior to 31 December 2010. As the Temporary Exemption is temporary only, the Company will be required to prepay any remaining Deposits and Accounts prior to the expiry date so as to ensure compliance with the NBDT Regime.

There are no other material matters relating to the offer of the securities, the subject of this Prospectus, (other than matters set out elsewhere in the Prospectus and contracts entered into in the ordinary business of the Company).

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