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.
- 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.