10 September 2006 Media Statement

Government to co-ordinate NZ-Aust business law

Commerce Minister Lianne Dalziel today released draft regulations to implement the next step in co-ordinating business law in New Zealand and Australia.

The draft regulations would enable the mutual recognition of securities offerings, allowing issuers to offer securities in both Australia and New Zealand using the offer documents of their home jurisdiction, she said.

“The regime is intended to remove unnecessary regulatory barriers to trans-Tasman securities offerings and reduce the costs of raising capital in both Australia and New Zealand.

“The release of the draft regulations is the next step towards completing one of the major achievements under the Memorandum of Understanding on Business Law Coordination between Australia and New Zealand signed earlier this year."

Lianne Dalziel said the Government would like feedback through the consultation process on any compliance issues for issuers.

“The regime aims to reduce costs for issuers, and feedback will enable the regime to be implemented in the most cost-effective way."

The draft regulations are available at www.med.govt.nz . Submissions close on 24 October.

The Agreement between the Government of Australia and the Government of New Zealand in Relation to Mutual Recognition of Securities Offerings contains the principles of the regime and the regulations provide for the implementation of the regime. The regulations will be made under the Securities Act 1978, as Part 5 of that Act already sets out the general framework for mutual recognition regimes for securities offerings.

The Australian Government proposes to release in the near future the exposure draft of its Bill to implement the regime. Together with the release of the draft New Zealand regulations, issuers and their advisors will be able to better assess how the regime will operate on both sides of the Tasman and provide comments on the workability of the regime.

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