IWI IKA - supporting iwi fisheries

Fisheries Settlement Assets

The Exchange (or Swap) of Settlement Quota

This attached document deals with exchanges (or swaps) of settlement quota shares (SET) as provided for in Part 4 of the Maori Fisheries Act (MFA).  The MFA provides a number of detailed processes and restrictions that apply to the exchange of SET.  Do note that the MFA contains separate provisions that govern the sale of SET and AFL income shares.

Section 173 of the MFA provides for the exchange of SET for other quota shares between two parties.  In this type of transfer there is no monetary exchange.

Such exchanges are subject to:

    1. key conditions in s173 (1) and (2) and
    2. the criteria and process set out in s 174, and
    3. any rules made in accordance with s176 and s54 and then published in the Gazette.

Key Principle

The key principle of exchanges is that the overall value of the commercial Maori Fisheries settlement quota shares held by any MIO or an entity within the TOKM Group cannot be diminished.

Equivalent Market Value

SET cannot be exchanged for a negotiated price, but rather must be exchanged for other quota shares of an equivalent fair market value.  Accordingly, Te Ohu proposes that for any package of SET to be swapped, the overall value must be within ± 10% of the “Fair Market Values” published in a schedule that Te Ohu proposes to post on its website every 6 months.

Download Exchanges Policy (Word - 400kb)