Background
7. The proposed Agreement 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.
8. In October 2001, the Australian Government invited New Zealand to work towards a regime for co-ordination in the recognition of securities offerings. In order to make it possible to enter into the proposed arrangement a new Part 5 of the Securities Act 1978 was included in the Securities Markets and Institutions Bill, enacted in December 2002. Part 5 provides for regulations to be made to give effect to mutual recognition regimes in relation to offers of securities that are regulated in other countries. The regulations will prescribe conditions for use of the mutual recognition regime, and will provide for exemptions from specified domestic securities law requirements for offers made under the regime.
9. Discussions with Australian officials on the proposed mutual recognition regime proceeded in parallel with the New Zealand enabling legislation. After deciding on the broad parameters of the regime, officials developed detailed proposals for the regime in 2003. These proposals were contained in the discussion document entitled Trans-Tasman Mutual Recognition of Securities and Managed Investment Scheme Interests released in May 2004. Approval for the release of the discussion document was given by the Cabinet Economic Development Committee on 5 May 2004 [EDC min (04) 8/10 refers]. Approval was also given for officials to begin negotiations to draft a treaty to implement the regime.
10. 28 submissions were received on the discussion document. Submissions were generally supportive of the regime and raised some technical and implementation issues. Officials have considered those issues and made some minor changes to the proposed regime. Officials have also reached agreement with Australian officials on the text of an Agreement. The Agreement text has been considered by the Ministry of Economic Development in conjunction with the Ministry of Foreign Affairs and Trade, the Ministry of Justice, the Treasury (Australia), the Department of Foreign Affairs and Trade (Australia) and the Attorney-General's Department (Australia).
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