NZ Seeks Public Input on Next Stage of Capital Market Reforms

Commerce and Consumer Affairs Minister Cameron Brewer said reducing the cost of capital is an important part of the Government’s wider plan to strengthen economic growth.

The New Zealand Government has launched a public consultation on the next phase of its capital market reforms, with a strong focus on making it easier and less expensive for businesses to raise investment while improving opportunities for everyday investors.

Commerce and Consumer Affairs Minister Cameron Brewer said reducing the cost of capital is an important part of the Government's wider plan to strengthen economic growth. He said many businesses struggle to expand because raising money can be costly, leaving promising ideas without the financial backing they need to move forward.

Brewer said a more efficient capital market would benefit companies looking to grow while also supporting the millions of New Zealanders who invest through KiwiSaver by creating the conditions for stronger long-term returns.

Eight Reform Areas Open for Consultation

The consultation follows an earlier round of reforms introduced last year that reduced compliance costs and simplified listing requirements on the New Zealand Stock Exchange (NZX). Those changes included making forward-looking financial information optional for companies seeking an NZX listing and increasing the mandatory climate reporting threshold to companies with a market capitalisation of $1 billion.

The latest discussion paper takes the reform programme further by examining whether existing rules are keeping pace with changing financial markets and new investment models. The Government is seeking public feedback on eight key areas that could lower barriers for businesses while maintaining confidence in the market.

The proposals cover product disclosure statements, liability rules for directors and issuers, settings for the Catalist market, audit requirements for the Unlisted Securities Exchange, limits for crowdfunding and peer-to-peer lending, wholesale investor rules, auditor liability, and broker activity together with the visibility of investment offers. According to the Government, the intention is to modernise regulations without weakening the protections that encourage investors to commit their savings with confidence.

Businesses and Investors Invited to Shape the Changes

Brewer encouraged businesses, investors, fund managers, financial advisers and other market participants to contribute their views through the Ministry of Business, Innovation and Employment's consultation process. He said practical feedback from people who use New Zealand's capital markets every day would help shape rules that better support businesses of all sizes, from start-ups seeking their first investment to established companies looking to compete internationally.

The Government believes well-functioning capital markets play a vital role in building a stronger economy by improving access to investment, encouraging innovation and helping businesses create jobs and expand. The consultation forms part of a broader effort to create a more competitive investment environment while ensuring that New Zealand remains an attractive destination for both companies seeking capital and investors looking for opportunities.