Draft regulations regarding mutual recognition of securities offerings released

Commerce Minister Lianne Dalziel has released draft regulations to implement the next step in co-ordinating business law in New Zealand and Australia.

The draft regulations, to be made under the Securities Act 1978, would enable the mutual recognition of securities offerings, allowing issuers to offer securities in both Australia and New Zealand using the offer documents of their home jurisdiction.

It is the next step towards completing one of the major achievements under the Memorandum of Understanding on Business Law Co-ordination between Australia and New Zealand signed earlier this year.

"The regime is intended to remove unnecessary regulatory barriers to trans-Tasman securities offerings and reduce the costs of raising capital in both Australia and New Zealand".

Submissions closed on 24 October.

In the near future, the Australian Government proposes to release the exposure draft of its Bill to implement the regime.

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