• NZ GVT announced it would keep emergency notification regime in the overseas investment act 2005 for 90 more days to protect New Zealand’s national interest.
• Follows NZ GVT May 2020, updated foreign investment screening rules.

Background

• Introduced June 2020, to manage heightened foreign investment risks due to Covid.
• Overseas persons to notify of controlling investments in existing NZ businesses or business assets, even if consent not usually needed under Overseas Investment Act.
• Allows NZ GVT to impose conditions/even block transactions not in national interests.
• Ministers review every 90 days to assess whether Covid justifies it remaining in force.

Next Steps

• An effectiveness Regime review expected to be completed after 2020 general election.
• To eventually be replaced by narrower national security and public order call in power.
• Will apply to strategically important business not normally requiring consent under Act.