Executive Summary
2. The objective of the proposed Agreement is to remove unnecessary regulatory barriers to trans-Tasman securities offerings. This will promote investment between Australia and New Zealand, enhance competition in capital markets, reduce costs for business, and increase the choice for investors.
3. The proposed regime has been developed under the framework of the Memorandum of Understanding on the Coordination of Business Law between Australia and New Zealand, and helps facilitate the single economic market agenda.
4. Currently New Zealand and Australian issuers cannot use the same offer documents in both countries when making a trans-Tasman offer of securities. The issuer must comply with the relevant fundraising requirements in both countries, unless operating under an exemption in the other country.
5. The proposed model would allow an issuer offering securities to extend an offer that is being lawfully made in one country to investors in the other country using the same offer documents and offer structure. The issuer would not be required to comply with most of the substantive requirements of the other country's domestic fundraising laws. Instead, issuers who wish to operate under the proposed regime will have to comply with some entry and ongoing requirements agreed between the two countries and prescribed in each country's law.
6. In New Zealand the regime will be implemented through the making of regulations under Part 5 of the Securities Act 1978. In Australia the passing of legislation is needed. The Agreement agreeing the principles of the regime will enter into force when both parties have enacted legislation to implement the regime.
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