New Zealand – CM P

2024, Cross-border, Update

New Country Manual Products – New Zealand BRP 2024

BRP has updated its Country Manual Products for New Zealand

Source of changesAnswers
Law / RegulationNo
New Position of the AuthoritiesNo
Evolution of Expert’s InterpretationYes

Definitions & Concepts, Regulatory Overview and Behaviour Template

The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.

Material changes

  •  In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information and investment research & financial analysis is now only permitted on an occasional basis onshore in New Zealand (at target).
  • It is highlighted that the provision of execution only services by foreign (unlicensed) service providers onshore in New Zealand (at target) triggers local licensing requirements. As a result, it is therefore only permitted to accept unsolicited client orders on an occasional basis in New Zealand (at target). Accordingly, the CM P Behaviour Template (CM P BT) now provides the answer “Grey zone/YES” in the relevant onshore scenarios.
  • Please note that the provision of investment services and/or product-related marketing activities onshore in/into New Zealand (at target/remote) to Retail Investors is not permitted as such activities trigger local licensing requirements under the Financial Advisers Act and are deemed to be “carrying on business” in New Zealand under the Companies Act. Accordingly, the CM P BT now answers the relevant scenarios with “NO”.
  • However, an exemption is made for the provision of investment advice and/or product-related marketing activities to Professional Investors via remote means of communication into New Zealand (remote) and on an occasional basis onshore in New Zealand (at target) where they have already established a relationship with the foreign (unlicensed) service provider on their own initiative.
  • Finally, it should be noted that New Zealand has an exemption from authorisation/lodgment for any distribution of securities to a maximum of 20 local investors (including Retail Investors) in any 12-month period, provided that the amount raised does not exceed NZD 2 million. However, on the advice of our local counsel, as this exemption is only available to locally licensed financial intermediaries, it is no longer considered a “Private Placement Exemption” in the CM P BT.

For more information, please contact us:

Geneva, May 27th, 2024