Mutual recognition of securities offerings

In a discussion paper released in May by New Zealand Commerce Minister Margaret Wilson and Ross Cameron, Australian Parliamentary Secretary to the Treasurer, a regime was proposed that would allow issuers to offer securities in Australia and New Zealand using the same offer documents and structure.

At present, the policy goals underlying the securities laws of New Zealand and Australia are basically the same, but there are differences in the details of the legislation.

Under the proposed new regime, an issuer would be allowed to extend an offer that is being made lawfully in one country (the home jurisdiction) to investors in the other country (the host jurisdiction) without being required to comply with most of the substantive requirements of the host jurisdiction’s fundraising laws, so long as entry requirements were met.

If implemented, this would cut down on compliance costs that are currently incurred when an offeror extends an offer to the other jurisdiction.

Click here for a copy of the discussion paper, entitled Trans Tasman mutual recognition of offers of securities and managed investment scheme interests.

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