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.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
