The Government has launched consultation on the next stage of its capital market reforms, seeking public feedback on proposals aimed at making it easier and cheaper for New Zealand businesses to raise investment while maintaining protections for investors.
Commerce and Consumer Affairs Minister Cameron Brewer said the reforms are intended to reduce the cost of capital, encourage business growth and improve investment opportunities for New Zealanders.
“It comes down to one thing: the cost of capital. When it costs too much for a Kiwi business to raise money, good ideas go unfunded and businesses that should be expanding stay stuck,” Brewer said.
The discussion document outlines eight proposed areas for reform, including changes to product disclosure statements, director and issuer liability, Catalist market settings, audit requirements for the Unlisted Securities Exchange, crowdfunding and peer-to-peer lending limits, wholesale investor settings, auditor liability, and broker activity and the visibility of investment offers.
The consultation follows an earlier round of reforms introduced last year, which included measures to reduce compliance costs for companies seeking to list on the NZX and changes to mandatory climate reporting thresholds.
Brewer said the Government wants feedback from businesses, investors, financial advisers, fund managers and other market participants on whether the current regulatory framework is creating unnecessary barriers to raising capital.
Public submissions on the proposals are now open through the Ministry of Business, Innovation and Employment (MBIE) website.
Image credit: Stephen Dawson
