普華永道-2024年新西蘭投資與商務(wù)指南報告-Doing Business in Aotearoa New Zealand Guide

DoingBusinessinAotearoa

NewZealandGuide

APRIL

2024

2

IDoingBusinessinAotearoaNewZealandGuide

Contents

6

14

23

31

Section1

Introduction

Section3

CapitalMarkets

Section5

OverseasInvestmentRegulations

Section7

Taxation

9

18

28

35

Section2

BusinessStructures

Section4

MergersandAquisitions

Section6

Treasury

Section8

Property

April2024I3

39

46

54

Section9

Employment

Section11

IntellectualProperty

Section13

DoingBusinesswithMāori

43

49

58

Section10

Privacy

Section12

Contractsand

ConsumerProtection

Section14

ClimateRegulations

4

IDoingBusinessinAotearoaNewZealandGuide

AboutPwCandPwCLegal

Kiaora,

Aswelooktothefuture,it’sclearthatchangewillcontinuetobetheoneconstant–bothhereinNewZealandandaroundtheworld.Theserapidchangesbringbothchallengesandopportunities.

AtPwCNewZealand,wehelpourclientsrespondtothischangingenvironmentsotheycandeliversustainedoutcomesthatsupportbusinesses,theeconomyandourwider

communitiesandsocieties.Partofthisisassistingclientstomigratetoandinvestin

AotearoaNewZealand.Thiseasy-to-useguidebringstogetherourknowledgeand

experienceofdoingbusinessinNewZealandacrossPwCNewZealandandPwCLegal.

Itprovidesanoverviewofouruniqueeconomic,social,andregulatorylandscapeandsetsoutthebusinessstructures,capitalmarkets,mergersandacquisitions,overseasinvestmentrules,taxationandotherkeylawsandregulationsthatyoushouldbeawareofbeforeseekingtoinvestordobusinessinNewZealand.

Wehopeyoufindthisguidehelpfulandshouldyourequiremoreinformationabout

themigration,business,andinvestmentopportunitiesinNewZealand,pleasecontact

ourteam.Throughourwiderangeofservicesandglobalnetworkofexperts,wecanhelpmakeentryintoorexpansionwithinNewZealandeasyforyou.

Welookforwardtohearingfromyou.

AndrewHolmes

CEO&SeniorPartner

April2024I5

Workingtogethertodelivervaluetoyourbusiness

Everydaymorethan328,000PwCpeoplein152countriesworkhardtobuildstrongrelationshipswithothersandunderstandtheissuesandaspirationsthatdrivethem.InNewZealand,PwCemploysover1,700peopleandhasofficesintheAuckland,Waikato,Hawke’sBay,WellingtonandCanterburyregions.

Overandaboveourtraditionalserviceofferings,PwCNewZealandalsohasastrongindustryfocus,withmulti-disciplineteamsdedicatedtokeyindustrygroupsinbothglobalandnationalmarkets.

Forourclients,thismeansthebestlocalknowledgecombinedwiththebroadestglobalexperience.

Ourpartnersandstaffarededicatedtosolvingthecomplexproblemsbusinessesarefacingintoday’schangingmarketplace.Wehavetheresourcestomeetyourneedsthroughourtrulyintegratedglobalnetwork.

PwCLegal–integratedlegalexpertise

PwCLegalofferslegalexpertiseacrossabroadrangeofpracticeareasandispartofthelargestlegal

servicesnetworkbygeography,withover3,700lawyersworldwide.Whiletechnicalexcellenceisatthecoreofwhatwedo,theglobalbreadthofourbusinessandmarketinsightdifferentiatesusfromtraditionallaw

firms,allowingustodeliverclientsafullyintegratedlegal,financial,taxandaccountingservice.

Intoday’sfast-movingworld,itismoreimportantthanevertohavealegalpartnerwhounderstandsallaspectsofyourbusiness.ThisdocumentbringstogetherthediversityofexpertiseandskillsacrossPwCLegalandPwCNewZealandtohelpyounavigatethechangingandcomplexbusinessenvironment.

1

Introduction

April2024I7

AotearoaNewZealandasaninvestmentopportunity

WiththeglobalmarketsfocusedtowardsAsia,andincreasinggeo-politicalinstability,NewZealandisadesirableinvestmentdestination.NewZealandhasastabledemocraticpoliticalsystem,withstronglegalinstitutionsandaresilienteconomy.Thisstability,coupledwithatransparentandopen-marketeconomy,andfreefloatingcurrency,providesgreatopportunitiesforoverseasinvestment.

Internationally,NewZealandisconsistentlyrecognisedashavingastableandbusinessfriendlyenvironment.NewZealandrankssixthontheIndexofEconomicFreedom2023andwasrankedoneoftheleastcorruptcountriesintheworldinTransparencyInternational’s2022Corruption

PerceptionsIndex(alongsideDenmarkandFinland).

TheNewZealandGovernmentwelcomessustainable,productiveandinclusiveoverseasinvestmentandrecognisesitscontributiontotheoverallprosperityofthecountry.

GovernmentandtheLegalSystem

NewZealandisanindependentnationanditsGovernmentismodelledontheWestminstersystem.

Thissystemisbasedonseparationofpowers,

aconceptintendedtopreventabusesofpower

withinGovernment,witheachbranchactingas

acheckontheothers.TheGovernmentisledbythePrimeMinisterandconsistsofthreebranches:Parliament,ExecutiveandJudiciary.

LawsarewrittenbytheExecutiveandarepassedthroughParliament.Parliamentiselectedby

thepublicthroughademocraticelectioneverythreeyears.1Itdetermineswhichlawstopassbyexamininganddebatingproposedlaws,alsoknownasbills.TheExecutiveismadeupofthePrimeMinisterandtheCabinetMinisters,whoadministerthelaw.Someoftheirpowersand

obligationsaredelegatedtolocalcouncilsandtribunals.TheJudiciaryinterpretsandappliesthelawbyhearinganddecidingcases,and

keepsthebalancebetweenthepoweroftheGovernmentandtherightsandresponsibilitiesofNewZealanders.

BusinessLandscape

NewZealand’srichnaturalresourceshave

affordedthecountrywithsignificantresilienceagainsteconomicdisruption.NewZealand’s

primarysectorremainsintegraltotheeconomyandhasremainedfinanciallyrobust,despite

thesignificantimpactsofrecentsevereweathereventsandtheavailabilityoflabourandsupplychainchallenges.

UnlikemostOECDdevelopedeconomies,

NewZealandhasaremarkablerelianceonthe

foodandfibresectorasasignificantcontributortoitsprosperity,reachingarecord$56.2billioninexportrevenuesandrepresentingthecountry’slargestcontributortothetradableeconomy.2

LeveragingNewZealand’snaturalcomparative

advantageswillcontinuetoprovetobea

prosperousstrategytocontinuemakingworld-

leadingstridesforwardinthefoodandfibresector.Whilequalityproductswillalwaysbeindemand,NewZealandhastheopportunitytostrategically

positionitsfoodandfibresectortoprimarily

offerhighskills,knowledge,technology,and

capabilitytocountrieswiththeexistingresourcesforproduction.MuchofNewZealand’ssuccessinthefoodandfibresectorcanbeattributabletoitscapabilityinprocesses,systems,andtechnology

developedtoturnsunlightandnutrientsintoabroadrangeofproductsforconsumers

aroundtheglobe.

1ThetermofParliamentisbeingreviewedbythecurrentGovernment,followingtherecommendationofanIndependentElectoralReviewtoextendthattermtofouryears,subjecttoabindingreferendum.

2

https://www.pwc.co.nz/insights-and-publications/2023-publications/transforming-nzs-food-and-fibre-sector-for-global-prosperity.html

8

IDoingBusinessinAotearoaNewZealandGuide

InternationalTrade

NewZealand’smajorexportpartnersincludeChina,Australia,theUnitedStates,Japan,

theUnitedKingdomandSouthKorea.Taking

advantageofitsinternationalreputationwitha

strongandgrowingnetworkofinternationaltradingpartners,NewZealandhassuccessfullyconcluded14freetradeagreements(FTA),includingthe

ComprehensiveandProgressiveAgreementforTrans-PacificPartnership(CPTPP),apartnershipwith11keyeconomiesintheAsia-Pacific,andlong-standingFTAswithAustraliaandChina.

AsapartytotheRegionalComprehensive

EconomicPartnership,NewZealandhasimprovedmarketaccessto14keymarketsthatgobeyondtheexistingFTAs.TheNewZealand-United

KingdomFTAcameintoforceon31May2023whichfurtherstrengthenedNewZealand’stradeandinvestmenttieswiththeUnitedKingdom.

NewZealandisalsoinnegotiationstoconcludeaFTAwiththePacificAlliance,upgradeexistingFTAsandcreatenewrulesonemergingissuessuchasthedigitaleconomy.

InvestinAotearoaNewZealand

NewZealandhasastrongreputationforinnovation,particularlyinagri-

techandbio-techproductsand

services,andafoodandfibre

sectorthatishighlyresponsiveto

globalopportunities.Italsoenjoysathrivinginvestmentecosystem,withsignificantgrowthinthenumberoftransactionsandcapitalinvested

inrecentyears.

NewZealandisrankedthirdoverallforcompetitivenessbytheInternationalTax

CompetitivenessIndex.

NewZealand’sstockexchangeisthefirsttoopenintheworldeachbusinessday.Thecountryalso

hostsseveralinternationalanddomesticbankinginstitutions.

ThelabourforceinNewZealandisskilledandproductive,androbustlabourlawsensurecompetitive

wageratesareavailable.

NewZealandiscommittedtoimmigrationpoliciesthatattractworld-classtalent,especiallyintheconstruction,engineering,healthcare,primaryindustries,andICTindustries.

2

BusinessStructures

10IDoingBusinessinAotearoaNewZealandGuide

DoingbusinessthroughAotearoaNewZealandentities

NewZealandiswidelyregardedasoneoftheeasiestplacesintheworldtostartabusiness.NewZealandlawallowsoverseasinvestorstosetupbusinessesinarelativelyshortspaceoftime,whichallowssuch

partiestoownassets,operatebusinesses,employlocalemployeesandenterintocontractswiththirdpartiesinNewZealand.

NewZealandcorporateentitiesaresimpletoform,globallyrecognised,andcomparabletotheirinternationalequivalents.

Ifanoverseascompanyis“carryingonbusiness”inNewZealand,itisrequiredtoregisterwiththe

NewZealandCompaniesOfficeasabranch.ThereareanumberofdifferenttypesofcorporateentitiesthatareusedinNewZealandandthemostcommonarelimitedliabilitycompanies,overseasbranches,andlimitedpartnerships.

Otherlesscommontypesofcorporateentitiesincludeunlimitedliabilitycompanies,incorporatedsocieties,generalpartnershipsandcharitabletrustboards.

Limitedliabilitycompanies

Themostcommonlyusedcorporateentityin

NewZealandisthelimitedliabilitycompany.

Limitedliabilitycompaniesarerelativelyeasytosetup,andestablishmentandongoingadministrationcostsareminimal,whichcanbeattractiveto

overseascompanieslookingtoestablishalocalsubsidiaryentity.

InNewZealand,limitedliabilitycompaniesprovidelimitedliabilitytotheirshareholders,whichmeanssuchshareholdersaregenerallyonlyliablefor

moneytheyhavecontributedorhaveagreedtocontributetothecompany(forexample,moneyowedonsharesthathavebeenissuedtothem).Aboardofdirectorsisresponsibleforgoverningthecompany,makingvariousbusinessdecisions

andoverseeingthegeneraloperationsofthecompany.

Establishment

LimitedliabilitycompaniesinNewZealandaregovernedbytheCompaniesAct1993(CompaniesAct).

Incorporatingalimitedliabilitycompanyin

NewZealandisarelativelysimpleprocess,and

requiresconfirmationofcertaindetailsandan

applicationtotheNewZealandCompaniesOffice.

Toincorporatealimitedliabilitycompanyin

NewZealand,thecompanymusthaveatleastonedirector,oneshareholder,andoneshare.Itmust

alsohaveaphysicalregisteredofficeaddress

andanaddressforserviceinNewZealand.Whiletheseareminimumrequirements,thereareno

minimumcapitalrequirements,restrictionsonthesizeofacompany’ssharecapitalorthenumberofshareholdersordirectors(albeitsomeadditionalregulatoryconsiderationsforcertaincompanies

withover50shareholders).

Whiletherearenoresidencyrequirements

onshareholders,limitedliabilitycompaniesinNewZealandmusthaveatleastone

NewZealandresidentdirector,orone

Australianresidentdirectorwhoisalsoa

directorofanAustralianregisteredcompany.

Oncethelimitedliabilitycompanydetailsaboveareconfirmed,theapplicationforincorporationmaybesubmittedtotheCompaniesOffice.

Ifneeded,anapplicationforanIRDnumber,

GSTregistrationandregistrationasanemployerwiththeInlandRevenuemaybesubmitted

atthesametime.

April2024I11

Uponincorporation,thenewlyincorporatedlimitedliabilitycompanywillbeissuedwith

aNewZealandCompanyNumberanda

NewZealandBusinessNumber.TheCompaniesOfficewillalsopublishcertaininformationaboutthecompany,itsdirectors,anditsshareholdersonapubliclyaccessiblewebsite,including:

?thecompany’sregisteredofficeaddressandaddressforservice;

?thenameandresidentialaddressofeachdirector;

?thenameandaddressofeachshareholder,aswellasdetailsofeachshareholder’s

shareholdinginterestinthecompany;

?acopyoftheconstitution(NewZealand’s

equivalenttoarticlesofassociationorcorporatebylaws),ifthereisone,howeveritisnot

mandatoryforacompanytohaveaconstitution;

?detailsofanybodycorporate(whether

registeredinNewZealandoroverseas)thatisthecompany’sultimateholdingcompany;and

?auditedfinancialstatementsthatcomplywithgenerallyacceptedaccountingpractice,if

theyarelargeand>25%overseasowned(seemoreonthisbelow).

Ongoingcompliance

Eachyear,alimitedliabilitycompanymustfile

anannualreturnwhichconfirmsthedetailsheldbytheCompaniesOfficeaboutitspresencein

NewZealand.FailuretofileanannualreturnisanoffenceundertheCompaniesActandcanleadtothecompanybeingremovedfromtheCompaniesRegister.Therearealsoobligationsupondirectorstomaintaincertainrecords(includingashare

register)andtoupdatecompanyinformationasrelevantchangesoccur(suchastheissueofnewsharesorchangestodirectors/shareholders).

DirectorsofNewZealandcompaniesaresubjecttocertainduties(includingtoactingoodfaithandthebestinterestsofthecompany,andtonottraderecklessly).Anypersontakingontheroleofa

companydirectorshouldensuretheyareawareoftheirdutiesandobligations,asinsomeinstancestheycanfacepersonalliabilityforbreachofdutyorotherlaws.

Inadditiontotherequirementtofileanannual

returneachyear,companiesthataredeemedto

be“l(fā)arge”andare>25%overseasownedwill

alsogenerallyberequiredtoprepareandregisterauditedfinancialstatementswiththeNewZealandCompaniesOffice.

ANewZealandcompanythatisnotasubsidiaryofabodycorporateincorporatedoutside

NewZealandwillbedeemedlargeifoneofthefollowingapplies:

?thetotalassetsofthecompanyandits

subsidiaries(ifany),asatthebalancedateofeachofthetwopreviousaccounting

periods,exceedNZ$66million

?thetotalrevenueofthecompanyandits

subsidiaries(ifany),asatthebalancedateofeachofthetwopreviousaccountingperiods,exceedsNZ$33million.

AcompanythatisasubsidiaryofabodycorporatethatisincorporatedoutsideNewZealandwillbe

deemedlargeifoneofthefollowingapplies:

?thetotalassetsofthecompanyandits

subsidiaries(ifany),asatthebalancedateofeachofthetwopreviousaccountingperiods,exceedNZ$22million;or

?thetotalrevenueofthecompanyandits

subsidiaries(ifany),ineachofthetwopreviousaccountingperiods,exceedsNZ$11million.

“FMCReportingEntities”,suchascompanieslistedontheNewZealandstockexchange,willhaveseparatefinancialreportingobligations.

Inthelightofthestaggeringincreaseingenerativeartificialintelligence(AI)use,directorsneedtounderstandtheirroleandresponsibilities

inthedeploymentofAI.This

article

providescommentaryonthe

relevanceofdirectors’dutiesinthecontextofAIandhowdirectorscaneffectivelymanagetheseduties.3

3

https://www.pwc.co.nz/services/consulting/generative-ai/artificial-intelligence-what-directors-need-to-know.html

12

IDoingBusinessinAotearoaNewZealandGuide

Overseasbranches

OverseasinvestorsmaywishtoestablishabranchoperationinNewZealand,ratherthanincorporatingalocalsubsidiarycompany.

IfanoverseascompanyiscarryingonbusinessinNewZealand,itwillberequiredtoregister

asanoverseasbranchontheCompaniesOffice’sOverseasRegister.ThisregistrationdoesnotincorporateaseparatelegalentityunderNewZealandlaw,andtheoverseascompanycontinuestocontractandenterintotransactionsinitsownright.

ANewZealandbranchisrequiredtonominatearepresentativeresidentinNewZealandtoacceptserviceofdocumentsonbehalfofthebranch.

Inordertoregisterabranchofficein

NewZealand,theoverseascompanymust

providecertifiedcopiesofitshomejurisdiction’scertificateofincorporationandconstitutional

documents,alongwiththedetailsofitsdirectors.IfdocumentsarenotinEnglish,acertifiedtranslationmustbeprovided.

Branchesofoverseascompaniesregisteredto

carryonbusinessinNewZealandmayberequiredtoprepareandfiletwosetsofauditedfinancial

statementswiththeCompaniesOffice:onesetfortheoverseascompany’soperations(includingtheNewZealandoperations)iftheoverseas

companyisdeemedtobe“l(fā)arge”,andonefortheNewZealandbusiness’operations(ifsuchoperationsareseparatelydeemedtobe“l(fā)arge”).

Thebranchand/oroverseascompanywilldeemedtobe“l(fā)arge”ifeitherofthefollowingapply:

?thetotalassetsofthe(a)overseascompanyanditssubsidiaries(ifany)and/or(b)itsNewZealandbusiness,asatthebalancedateofeachof

thetwopreviousaccountingperiods,exceedNZ$22million;or

?thetotalrevenueof(a)theoverseascompanyanditssubsidiaries(ifany)and/or(b)its

NewZealandbusiness,ineachofthetwopreviousaccountingperiods,exceeds

NZ$11million.

Similartolimitedliabilitycompanies,branchesofoverseascompanieswillberequiredtofileanannualreturneachyearinordertoconfirmthatthedetailsheldbytheCompaniesOfficeareuptodate,notifytheCompaniesOfficeofchangestoitsdirectors,addressesorconstitution,andtoconfirmthattheoverseascompanyisstill

carryingonbusinessinNewZealand.

WhileoverseascompaniescarryingonbusinessinNewZealandarerequiredtoregisterontheCompaniesOffice’sOverseasRegister,

thereisnobright-linetestforwhetherornotanoverseascompanyis“carryingonbusiness”inNewZealand.Whetherregistrationisrequiredwilldependonthespecificfactsineachcase.

April2024I13

Limitedpartnerships

WhilesomeofthedetailsoftheLPwillbepubliclyavailableontheLimitedPartnershipRegister(suchasdetailsofthegeneralpartnerandregistered

officedetails),theidentityandpartnershipinterestofthelimitedpartnerswillnotbepubliclyavailable.Thiscanbeattractivetoinvestorswhodonotwanttheirdetailstobeavailabletothegeneralpublic.

Aswithlimitedliabilitycompanies,LPsare

requiredtofileanannualreturneachyear,andthosethatareconsidered“l(fā)arge”mayalsobe

requiredtoprepareauditedfinancialstatements.

Additionalobligations

Alimitedliabilitycompany,branch,orLP’s

natureofbusinesswilldeterminewhatadditionallegislativeorregulatoryrequirementstheentitywillbesubjectto.Forexample,iftheentityisinvolvedininsurance,therewillbeadditionalcompliance

obligationsundertheInsurance(Prudential

Supervision)Act2010andtheFinancialMarketsConductAct2013.

UnderNewZealandlaw,alimitedpartnership

(LP)constitutesitsownseparatelegalentityandmusthaveatleastonegeneralpartnerandonelimitedpartner.

?Ageneralpartnerisresponsibleforthe

managementoftheLPandisliableforitsdebtsandliabilities,totheextentthattheLPisunabletomeetthem.Thegeneralpartnermay(subjecttocertainrequirements)beanindividual,

alimitedliabilitycompany,anotherlimitedpartnership,orpartnership

?AlimitedpartnerisliableonlytotheextentoftheirfinancialcontributiontotheLP.Inordertopreservetheirlimitedliability,limitedpartnersmustnotparticipateinthemanagement

oftheLP

LPsaregenerallytreatedas“flowthrough”entitiesforincometaxpurposes–incomeandexpenditureofaLPistreatedasbeingderived/incurredby

investingpartnersdirectly,inproportiontotheirpartnershipinterest.

Ifaninvestorpartner’sexpenditureexceedstheirattributedincomefortheyear,theexpenditure

maybeabletobeoffsetagainstincomefromothersources(subjecttoalosslimitationrule),orcarriedforwardandoffsetagainstthatpartner’sincomeinsubsequentincomeyears.

EstablishingaLPinNewZealandrequires

anapplicationtobelodgedwiththeLimited

PartnershipRegisterviatheCompaniesOffice.Thisapplicationmustincludethedetailsofthe

generalpartner(s),thelimitedpartner(s)and

itsregisteredoffice(whichmustbeaphysical

addressinNewZealand).TheapplicationmustalsoconfirmthattheLPhasalimitedpartnershipagreementthatcomplieswiththeapplicablelaw(thoughthisdoesnotneedtobelodgedwiththeCompaniesOffice).

3

CapitalMarkets

April2024I15

Privatecapitalmarkets

NewZealandhasalwaysbeenanetimporterofcapitaltofundgrowthandisgenerallyconsideredtobeanattractiveinvestmentdestinationforcapital.DomesticandoffshoreprivateequityandventurecapitalfundingcontinuetoplayasignificantroleintheNewZealandcapitalmarkets.

Thepastfewyearshaveseensignificanttransactionalactivity,fueledbymorerelaxedmonetaryandfiscalpolicy,whichhasalsoledtotheincreasedpredominanceofinvestmentfundssecuringcapitaltoacquireassets.Whileinitialpublicofferingshavealsobeenattractivetoassetowners,significanttransactions

haveoccurredinprivatemarketswithtradeandfundinvestorsacquiringassets.

Inrecentquarters,investorshavebeenmoreselective,butinvestmentappetiteisholdingupandthereis

noshortageofprivatecapitaltobeinvestedinqualityopportunities.Investorsareendeavouringtomeet

andbridgerealisticvendorexpectationsandtransactionactivityin2023wassurprisinglyconsistentdespite

challengingeconomicfactors

.4

Māoricollectivesandorganisationsincreasinglycontributetoanactiveprivateequitymarketasinvestors,

andco-investors,acrossnumeroussectorsandindustries.TheNewZealandGovernmentfurthercontributestothepoolofcapitalandinvestmentactivity,andprovidessomeco-investmentopportunitieswithCrown

investmentvehicles(notablyinearlystage,highgrowthcapitalmarkets).NotableinvestmentsfacilitatedbytheNewZealandGovernmentincludetheNewZealandSuperannuationFundandAccidentCompensationCommissionfund,collectivelyvaluedatapproximatelyNZD$120billion,andKiwisaverretirementschemeinvestmentswhicharevaluedatoverNZD$100billion.

Accesstocapitalcontinuestobeasimportantasever,as

NewZealandfirmslooktogrow.Offshorecapitalisvitaltocontinue

tobolsterdomesticsourcesinordertoachievethelevelof

investmentrequiredtogrowNewZealand’sproductiveassets.

Securitieslawregime

Anofferoffinancialproducts(e.g.debtandequitysecurities,managedinvestmentproductsand

derivatives)inNewZealandisregulatedbythe

FinancialMarketsConductAct2013(FMCA)andoverseenbytheFinancialMarketsAuthority(FMA).

Anofferoffinancialproductsismadein

NewZealandifitisreceivedbyapersonin

NewZealand,unlesstheofferortakesreasonablestepstoensurethatpersonsinNewZealand

cannotaccepttheoffer.ThisappliesregardlessofwhethertheofferismadebyaNewZealandoroffshoreentity.

Anofferoffinancialproductswillrequirethepreparationandregistrationofaproduct

disclosurestatement,unlessanexemptionor

exclusionapplies.Theformandcontentofa

productdisclosurestatementisheavilyregulatedundertheFMCAandrelatedregulations.

ThereareanumberofexclusionsandexemptionsundertheFMCA,wherenodisclosuredocumentisrequired,orareducedlevelofdisclosureapplies.Commonexclusionsandexemptionsrelateto

offersto‘wholesaleinvestors’,‘closebusiness

associates’and‘employeeshareschemes’thatfitwithinspecificcriteria.Iftheinvestorisunabletorelyonanyoftheexclusionsorexemptions,thenitispossibletoapplyforabespokeexemption

fromtheFMA.

AustraliaandNewZealandhaveaTrans-Tasmanmutualrecognitionschemeunderwhicha

NewZealandissuermaymakeanofferoffinancialproductstoinvestorsinAustraliawithoutneedingtoprepareaseparateofferdocumentunder

Australianlaws.ThemutualrecognitionschemealsoappliestoAustralianissuersinrespectofofferstoNewZealandinvestors.

AfterasignificantreformofNewZealandfinancialmarketslegislationin2013,NewZealandbenefitsfrommoresimplifiedcapitalraisingprocesses,

andgreaterinvestorprotections.

4

https://www.pwc.co.nz/services/mergers-acquisitions-valuations/second-quarter-of-2023.html#content-free-1-3c80

]

16

IDoingBusinessinAotearoaNewZealandGuide

Debtcapital

NewZealandhasdevelopeddebtcapitalmarkets,withtraditionalandnon-traditionaldebtfinanciers.TheReserveBankregulatesbanks,andnon-bankdeposit-takers(NBDT)whichincludeinstitutions

thattakedepositsfromthepublic,suchasfinancecompanies.Thereare27registeredbanks,manyofwhichareinternationallyowned,and

15registeredNBDTs.

FormostNewZealandbusinesses,banks

providetheoverwhelmingmajorityofdebt,thisisestimatedtoberoughly90%.Ofthat,roughly80%

comesfromthefourmainAustralasianbanks.Thedomesticbondmarkethasapproximately150instrumentswith$55billionofmarket

capitalisation.Corporate(non-bank)bond

issuesarerelativelyrare,andlargelycentreoninfrastructure(e.g.airportsandelectricity)andpropertyissuers(includingretirementvillages).Thebondmarketextendsbeyond10yearsinsomecases(e.g.GovernmentbondsorLocalGovernmentFundingAgency(LGFA)),but

formostcorporatesislimitedtoamaximumlengthoffivetosevenyears(dependingon

thetradingconditions).Wearehoweverseeingtheriseofprivatecreditwithanumberofdomestic

andAsia-Pacificbasedfundsactivelydeployingcapitalin