Agreement between Australia and New Zealand on Securities Offerings Signed - Minister of Commerce Media Statement

New Zealand Commerce Minister Lianne Dalziel and Australian Treasurer Peter Costello today signed an agreement underpinning a regime for mutual recognition of securities offerings between the two countries.

The ministers said the new regime would remove unnecessary regulatory barriers to trans-Tasman securities offerings. This means that only one prospectus will be needed in most cases.

"This will promote investment between Australia and New Zealand, enhance competition in capital markets, reduce costs for business, and increase the choice for investors."

Ms Dalziel and Mr Costello welcomed the regime as being "one of the major achievements in the last few years under the Memorandum of Understanding on Business Law Coordination between Australia and New Zealand". It has been widely supported by businesses on both sides of the Tasman.

"A mutual recognition regime will reduce the costs of raising capital in both Australia and New Zealand while maintaining investor protection through appropriate disclosure."

The details of the regime will be implemented through each country's legislation or regulations. It could be in force by the end of this year.

Links

• Full Text of the Agreement between the Government of Australia and the Government of New Zealand in Relation to Mutual Recognition of Securities Offerings (22 February 2006)
• Cabinet Paper (15 August 2005)

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