Commerce Minister Andrew Bayly says the changes would provide capital for local companies. Photo: IRD/screenshot
- Government plans to loosen finance market rules
- Make it easier for KiwiSaver investment in private assets, NZX listing
- Investment industry backs changes
- Shareholders Assn supports but wants more disclosure on private assets
Finance industry players are positive about proposed changes to make it easier for KiwiSaver funds to invest in a broader range of private assets and to list on the NZ Stock Exchange.
Commerce Minister Andrew Bayly wants to loosen the rules to allow KiwiSaver funds to invest in private assets, housing and infrastructure projects, which he said would provide much needed capital for local companies as well as offer investment diversification.
Many of the mooted changes have been put forward by the industry in the past, notably in the Capital Markets 2029 report from five years ago led by former investment banker Martin Stearne.
He said the changes were important for New Zealand capital markets, and he believed there was more that could be done.
"I think there's some more changes that can be made around KiwiSaver and around broader participation in the capital markets ... also there are some tax changes just to level the playing field between things such as direct investment and indirect investment," he said.
Industry backing
The Securities Industry Association (SIA), a group of heavyweight investment concerns, said it liked the direction of the proposed changes.
"Progressing this package of reforms will assist companies in attracting much-needed investment capital for growth and innovation and give Kiwis an opportunity to be a part of that growth story," the chief executive of FirstCape and SIA member Malcolm Jackson said.
"Our industry supports proportionate and risk-based regulation that creates a framework for New Zealand's capital markets to thrive and contribute positively to the New Zealand economy."
The NZX, which has suffered in recent years from an exodus of companies and a dearth of new listings, was similarly supportive.
"New Zealand needs to remove regulatory roadblocks that are hindering investment and access to capital for New Zealand companies and projects," Chief executive Mark Peterson said.
The plan would see rules on financial forecasting required for share floats relaxed and raise the threshold for big companies needing to make mandatory climate reports, and review the liability of directors for non-compliance.
"The package of changes ... will materially improve the viability for companies wanting to meet their growth aspirations via the listed market," Peterson said.
The NZ Shareholders Association, which promotes the interests of small retail investors, said it broadly supported the proposals.
"Levelling the playing field between listed and unlisted markets is a significant step in ensuring future investment opportunities for all New Zealanders, whether they invest directly or through fund managers," Chief executive Oliver Mander said.
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