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.
Refunds for Home Direct customers after first Unfair Contracts Term declaration
The Commerce Commission is urging customers of mobile trader Home Direct to check if they are eligible for a credit or refund, after the High Court declared that terms in its contracts relating to its “voucher entitlement scheme” were unfair and unenforceable by Home Direct. “This is the first time that a Court has made a declaration under the Fair Trading Act that terms in a standard form consumer contract are unfair
Date locked in for controversial bank capital decision
The Reserve Bank will reveal its final decision on a controversial proposal to make banks hold more capital on Thursday December 5 at 12pm. The Reserve Bank is proposing a lift in the amount of risk-weighted capital retail banks hold, from 8.5 per cent to 16 per cent. The increase is designed to make banks safer and better designed to handle periods of financial stress by holding enough capital to reduce the probability of a financial crisis in New Zealand to a one in 200-year event.
Consultation opens on Kiwi businesses assessing and reporting their climate-related financial risks
Minister for Climate Change James Shaw has announced the start of public consultation on a new regime that would require companies to assess and report their climate-related financial risks. "Climate change not only presents physical risks to Aotearoa New Zealand, but increasingly presents financial risks to a large number of our businesses," said James Shaw. The discussion document sets out a proposed mandatory regime, the purpose of which is to ensure that material risks and opportunities are routinely considered in business and investment decisions
Global report suggests third of banks vulnerable to downturn
McKinsey & Co issued a report which said that 60 per cent of banks around the world might not be economically viable because their returns on equity were not keeping pace with their costs. Global return on tangible equity (ROTE) had flatlined at 10.5 per cent, despite a small rise in rates in 2018, it said. Claire Matthews, a banking commentator from Massey University, said it was reasonable to suggest banks would struggle in an economic downturn because their impaired asset expense would increase as people fell behind on things such as mortgages
Govt gives Japanese-owned forestry company Pan Pac Forest Products free pass to buy NZ land
Japanese-owned Pan Pac Forest Products was given the special approval to bypass the OIO to purchase land for forestry for the next three years as the government sought foreign forestry money to help meet its tree planting targets. The pre-approval was given to Pan Pac despite the Green Party having strongly protested land sales to foreigners and Forestry Minister Shane Jones saying he was sympathetic to rural concerns that converting productive farm land to forestry could cost jobs.
Heat being turned up in coporate bond market
Global credit ratings agencies have been keeping a close eye on trillions of dollars locked up in corporate bonds, amid heightened concerns that many were at risk of being marked down to junk bond status. While the danger had been lurking for some time, the International Monetary Fund warned last week that 40 percent of all corporate debt in major economies could be considered "at risk" in another global downturn -- rising to $US19 trillion ($NZ29.6 trillion), which would exceed risk levels seen during the 2008 global financial crisis.