Investor Presentaiton
Overseas Investment Law Reform Timeline
16 June 2020
22 March 2021
7 June 2021
5 July 2021
OVERSEAS INVESTMENT OFFICE
Toitū Te Whenua
Land Information
New Zealand
24 November 2021
New functions
New national
interest assessment
Applied to transactions requiring
notification under the Temporary
Emergency Notification Regime
if that application involved a
strategically important asset, an
overseas government investor, or is
an area of specific national interest.
Stronger enforcement
powers The OIO given stronger
enforcement powers to act
against overseas investors
who do not comply, including
seeking injunctions, enforceable
undertakings, and increased
penalties.
Who the Act applies to
✰ Simplified screening changes so
that some low-risk transactions no
longer need consent to proceed, and
reducing compliance requirements
for listed companies and
investments with adjoining sensitive
land.
Remove
Remove lower-risk transactions
Simplify
Simplifying investor requirements
Manage
L
Managing higher risk investments
Stewardship
Increasing stewardship
How we assess
New investor test
A new investor test focusing on
the character and capability of
investors, made up of 12 factors
that include assessing criminal
convictions, penalties for tax
evasion, corporate fines, and civil
penalties.
The new test applies to both
individuals with control of the
investment, and the corporate
entities that are making the
investment.
New Zealanders are now not
subject to the investor test.
New function
④ National Security and
Public Order notification
regime
This regime enables the review
of investments in strategically
important businesses (SIBS) to
manage investments that may
pose a significant risk to New
Zealand's national security or
public order.
The regime applies to investments
that do not otherwise require
consent.
Notification of an investment is
mandatory for some SIBS and
voluntary for others. This system
replaced the temporary emergency
notification regime.
Who the Act applies to
× Incremental increases in
ownership or control of
sensitive land that do not cross
thresholds (25%, 50%, 75% or
100%) will no longer require
consent.
Companies that are both
New Zealand-incorporated
and New Zealand-listed with
shares that are widely held less
likely to be classed as overseas
persons.
Clarify when a managed
investment scheme will be
classed as an overseas person.
* Increase in consent
threshold for leases of sensitive
land from 3 to 10 years.
✰ New exemptions are
available for lower risk
transactions.
✓ National interest test
exemption for low-risk
overseas government
investors.
Major Banks become
strategically important
businesses.
What to do differently
Repeat investors who have
satisfied the investor test do not
need to satisfy the test again unless
there is a change in circumstances.
A new stand-alone investor
test can be used to assess the
suitability of the individuals and
entities that make up an investor or
a wider investor group before they
make an investment application.
Significant Business
Applications must now include tax
information for Inland Revenue.
Fees have been set for the new
exemptions and approvals that
come into effect.
Refine scope of the national
interest assessment
Increase threshold for
transactions caught from over
10% to over 25% ownership by an
overseas person.
%3
Unrelated overseas
governments will not be
aggregated for assessing if the
threshold is met.
Passive overseas government
investors may be eligible for an
exemption.
Focusing on the use of the
assets being invested in, not just
whether the owner is a strategically
important business.
How we assess
Statutory timeframes
for decision making
The law will prescribe timeframes
within which decisions on
applications and notifications are
made. Timeframes will include time
spent seeking information from
investors and third parties and will
vary according to the investment
pathway.
Benefit to New Zealand test
simplified to consider 7 broad
factors, rather than 21 specific
factors.
The changes include protecting
sites of significance to Māori,
higher benefit threshold for farm
land and standardised benefit test
for fisheries investments.
The counterfactual requirement is
simplified to compare the benefit
of investment to the status-quo.
What to do differently
Farm land advertising
requirements are strengthened
with amended provisions
relating to exemptions and
alternative forms of advertising.
Investors are required to
offer fresh or seawater areas
(formerly 'special land') to the
Crown if acquiring a freehold
interest. The Crown must
acquire this land unless an
exception applies.
responsibilities
10/21 Disclaimer: This outline provides high-level general information only. It does not constitute legal or other advice. The OIO recommends all overseas investors seek independent expert legal advice on their responsibilities and obligations.
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