THE Mutual Recognition of Securities Offerings regime was launched in Wellington on 13 June.
New Zealand Commerce Minister Lianne Dalziel and Australian Minister for Superannuation and Corporate Law Senator Nick Sherry announced the agreement that allows for the same securities offerings document to be issued in both countries.
Both the New Zealand Securities Commission and the Australian Securities and Investments Commission (ASIC) have welcomed the announcement.
“This new regime will mean cost savings for companies offering securities and will benefit investors with a wider range of investments. It is a significant step towards achieving a single economic market,” Securities Commission chair, Jane Diplock says.
The agencies have also published joint guidance to New Zealand and Australian issuers offering shares, debentures or managed or collective investment schemes in both countries. The guide explains what issuers have to do under the trans-Tasman mutual recognition scheme for offers of securities and the role of the regulators in both countries in relation to an offer.
It also alerts issuers to the specific parts of Australian and New Zealand law that will continue to apply when offers are made under the MRSO, such as the prohibition on door-to-door selling in New Zealand and the securities hawking laws in Australia. The guide is available on the Security Commission’s website www.seccom.govt.nz.
The MRSO will be overseen by ASIC in Australia and the Companies Office and the Securities Commission in New Zealand.
The Australia-New Zealand approach was considered world leading in this area, Lianne Dalziel said.
“This is a tremendous step forward. It will remove barriers to trans-Tasman securities offerings and reduce costs to business as only one prospectus will be needed in most cases and investors will benefit from having a wider choice of investment opportunities.
“This regime is another important step towards a seamless trans-Tasman business environment,” the Minister added.