New regime for trans-Tasman securities offerings

- Reprinted From The Bulletin, Newsletter Of Nz Securities Commission


The MSRO means issuers of securities can now use one prospectus to offer shares, debentures, or managed or collective investment schemes to investors on both sides of the Tasman, subject to meeting certain requirements. Legislation and regulations were introduced in each country by the respective Governments to bring this regime into effect.

“The 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,” Commission Chairman, Jane Diplock, says.

 “Since the agreement came into force I am delighted that one international investment bank has already given notice of their intention to use the scheme for 24 Australian managed funds to be made available to New Zealand investors. The MRSO underpins the strength of each country’s regulatory regime and the co-operative relationship between the two nations.

We have worked closely together to ensure the new regime maintains the existing protections for investors while reducing the capital raising and compliance costs for issuers,” ASIC Deputy Chairman, Jeremy Cooper, 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, available on www.seccom.govt.nz, 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 MRSO is overseen by ASIC in Australia and the Companies Office and the Securities Commission in New Zealand.

These agencies have developed protocols on cooperation and information sharing to ensure the smooth running of the new regime.

The Commission has a number of long standing class exemptions for offers from Australian issuers which will now be reviewed. The Commission will undertake targeted consultation during the review. If you would like to be consulted contact huanlan.yap@seccom.govt.nz.

Appropriate transitional provisions will be put in place where changes are made.