Mayne Wetherell has produced a guide to doing business in New Zealand to provide overseas investors, and their advisers, with information about investing here.
The guide summarises inbound investment, immigration, investment structures, financial services regulation, tax, securities, takeovers, intellectual property, employment, land law, and trade practices.
Useful links to market events and commentary.
Takeovers Panel: Updated Guidance for Unlisted Code Companies
The Takeovers Panel has advised that the Regulatory Systems (Economic Development) Amendment Act (No 2) 2019 (the Act) came into force on 13 January 2020. The Panel has updated its guidance for unlisted Code companies and is available to discuss any questions that directors and shareholders, or their advisers, might have on the new definition" of a "code company".
Craigs Investment Partners returning to full New Zealand ownership
One of the country's largest investment firms, Craigs Investment Partners, is returning to full New Zealand ownership with Germany's Deutsche Bank selling out. "We have enjoyed a nine-year relationship with Deutsche Bank, one that has proved mutually beneficial throughout a period that has seen the New Zealand financial markets evolve and our business grow exponentially," Craigs founder and chairman Neil Craig and managing director Frank Aldridge said in a statement.
Bank caution boosts finance companies and credit unions
dvisory firm KPMG's annual survey of non-bank financial institutions showed a 16.5 percent rise in net profits in 2019 to $13.2 billion, driven largely by a 9.3 percent growth in lending. Companies also improved their margins and KPMG's head of banking and finance John Kensington said they were making 19 basis points more on a loan they they were a year ago. "A lot of that has been due to their funding coming down but they've also increased across the board as an average as a sector the amount that they charge on loans slightly as well."
FMA clarifies green bond disclosure requirements
The Financial Markets Authority (FMA) has published an information sheet outlining when issuers of securities described as “green bonds” can apply the “same class exclusion” to disclosure requirements. The same class exclusion allows issuers to offer a new financial product, without full disclosure requirements, when that new product is of the same class as an existing quoted financial product. The same class exclusion is part of the Financial Markets Conduct Act, and helps to reduce compliance costs for issuers.
Reserve Bank welcomes Government decision on Bank’s future objectives
The Reserve Bank welcomes the Government’s decisions on its future role and responsibilities as part of Phase 2 of the review of the Reserve Bank of New Zealand Act. Reserve Bank Governor Adrian Orr welcomed the changes: ‘Financial stability is vital in maintaining and improving the wellbeing of all New Zealanders, and the financial stability objective will give greater clarity of purpose. These changes are an important step towards modernising New Zealand’s financial stability framework and the Reserve Bank’s governance and accountability settings.’
Higher bank capital means safer banking system for all New Zealanders
Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. The changes will be implemented over seven years, giving plenty of time for banks to manage a smooth transition and minimise any adjustment costs