find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Trans-Tasman Capital Raising Breakthrough

Trans-Tasman Capital Raising Breakthrough

The New Zealand and Australian governments have announced a mutual recognition regime for trans-Tasman securities offerings.Under the Agreement on the Mutual Recognition of Securities Offerings,…

The New Zealand and Australian governments have announced a mutual recognition regime for trans-Tasman securities offerings.

Under the Agreement on the Mutual Recognition of Securities Offerings, an eligible New Zealand offeror now can offer into Australia using its New Zealand offer documents, and vice versa, provided minimal requirements are met.

New Zealand Commerce Minister Lianne Dalziel and Senator the Hon Nick Sherry, Australian Minister for Superannuation and Corporate Law, released a statement describing the initiative as a: “landmark agreement between Australia and New Zealand that will smooth the way for businesses to raise capital and for the public to invest with greater ease in both countries.”

Chapman Tripp partner Roger Wallis hailed the arrangement as “unique”, and believes it will have a significant impact on the trans-Tasman securities market.

“It is a fairly unique regime, to the extent that you are giving up your sovereignty. In a sense you’re saying: ‘Well, I’m not going to rely on the Corporations Act for these class of investors anymore’,” Wallis said.

“The guts of it is that it allows each country to have their securities offering documents circulated in the other country with their own local law applied,” he said.

“So, in other words, it allows a New Zealand prospectus and investment statement to be distributed within Australia primary governed by New Zealand law rather than the Corporations Act, and vice versa.”

Prior to the agreement, companies wishing to make a trans-Tasman offering relied upon fitting into a series of narrowly defined exemptions, or completed additional documentation. Many companies chose not to offer because of the onerous requirements.

Initially, Wallis predicts that there will be additional work for lawyers in both Australia and New Zealand as they educate the market about the new rules.

The documentation requirements are far less extensive, so the focus will be on explaining to clients which local laws will still apply — for example private placement offers are not covered by the new agreement, nor is financial services licensing which has yet to be introduced in New Zealand.

In the long term, the regime is tipped to reduce costs on both sides, and repeat users of the system will have a reduced need for legal advice over time.

“So the obvious benefits are that you are complying primarily with one country’s laws rather than two, and it means that there’s less duplication required,” Wallis said.

New Zealand corporates will be hoping to see a deeper capital market emerge, while listed corporates straddling both markets will have a far wider market for fundraising.

The system is currently available only to issuers that are incorporated in their home jurisdiction, although New Zealand has made the offering on a wider basis. Wallis emphasised the importance of the element of mutual recognition going forward,

“You can’t really have partial mutual recognition: you either give up jurisdiction in the area or you don’t — or otherwise you end up with two complicated systems.”

The long-term success of the agreement will rest upon a system that revolves around the similarities between the regulatory regimes, Wallis said,

“The New Zealand regime, although it’s different in the detail, it’s founded in disclosure and it’s not that different from the objectives of the fundraising rules of the Corporations Act, so conceptually, it’s quite a good model — although you need to be brave enough to give up on some of the [legal] intricacies of the differences.”

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Trans-Tasman Capital Raising Breakthrough
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...