New Zealand – OIC Foreign Investment Changes

New Zealand – OIC Foreign Investment Changes

On 19 May 2021, NZ PRL held the third reading of the overseas investment amendment bill (no 3), which will now progress to the royal assent stage.

Key Amendments

  • The key amendments include a new investor test, temporary emergency notification requirements, along with a new national interest assessment for some transactions.
  • Also simplifying the regime for low-risk transactions and stronger enforcement powers.
  • They introduce a new notification pathway for transactions involving acquisition of a controlling interest and existing rules for significant business and sensitive land assets.

New Investor Test

  • A new investor test was introduced as part of measures in Overseas Investment (Urgent Measures) Amendment Act 2020 but did not come into effect with rest of act.
  • They were deferred until either an Order in Council, or 12 months after enactment.
  • The investor test prescribes 12 character and capability factors to be considered which, includes convictions, penalties for tax evasion, corporate fines and/or civil penalties.