Trans-Tasman agreement receives industry’s approval
Regulatory and industry associations have welcomed the Government’s new regime for Trans-Tasman securities offerings, the Mutual Recognition of Securities Offerings (MRSO).
MRSO allows issuers of securities to use one prospectus to offer shares, debentures or managed or collective investment schemes to both Australian and New Zealand investors, subject to meeting certain requirements.
This enables Australian issuers to extend an offer that is being made in Australia to New Zealand investors without being required to comply with most of the substantive requirements of New Zealand’s capital raising laws.
The Investment and Financial Services Association describes the agreement as a major step forward in removing unnecessary regulatory barriers and lowering the cost of capital raising in both countries.
The Australian Securities and Investments Commission believes MRSO underpins the strength of each country’s regulatory regime and the co-operative relationship between the two nations, while the New Zealand Securities Commission considers it a significant step towards achieving a single economic market.
Both regulatory bodies, together with the New Zealand Companies Office, will oversee the regime.
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