Trans-Tasman investment breakthrough
Lianne Dalziel
Trans-Tasman investment has been made just that bit easier today, with the Australian and New Zealand Governments signing off on an Agreement on the Mutual Recognition of Securities Offerings.
The agreement was signed by the New Zealand Commerce Minister, Lianne Dalziel, and the Minister for Superannuation and Corporate Law, Senator Nick Sherry, and allows for the same securities offerings documentation to be issued in both countries.
Under the regime, Australian issuers can extend an offer that is being made in Australia to New Zealand investors without being required to comply with most of the substantive requirements of New Zealand’s capital raising laws.
The two ministers described the agreement as a key advance in the ‘Single Economic Market’ agenda.
Dalziel said the agreement would remove barriers to trans-Tasman securities offerings and reduce costs to business, as only one prospectus would be needed in most cases and investors would benefit from having a wider choice of investment opportunities.
Sherry said the mutual recognition regime would benefit businesses looking to access capital while at the same time maintaining investor protection through appropriate disclosure.
AUTHOR
Mike Taylor
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