KEY POINTS:
Australian and New Zealand today signed an agreement which will make it simpler for companies in both countries to meet document requirements.
Commerce Minister Lianne Dalziel and Australian Minister for Superannuation and Corporate Law Nick Sherry told reporters it was a groundbreaking and landmark agreement.
Under the Mutual Recognition of Securities Offerings regime issuers of securities can from today use one prospectus to offer shares, debentures or managed or collective investment schemes to investors in both countries.
If a prospectus met requirements of the Securities Commission in New Zealand then the Australian Securities and Investment Commission would accept them and vice versa.
"There are virtually no two countries in the world that would trust each sufficiently in the economic and financial regulatory sphere to have this sort of agreement," Mr Sherry said.
He said the agreement recognised the "very strong and close" relationship between the countries.
Securities Commission chairwoman Jane Diplock said the trust shown between regulators was unusual.
"I think (trust) is a fundamental plank of the arrangement - that we respect each other's regulatory frameworks; we see them as equivalent and have the trust in the enforcement appetite of both regulators that there will be equal amounts of energy put into enforcing any breaches..."
Companies that want to issue in both companies would have to register with the Register of Companies.
"That registration is the only step they really need to take... to let us know the issue is going to be offered to New Zealand investors."
When there was a complaint that resulted in a ban it would cover both countries.
She said the move may deepen the liquidity of both markets by benefiting investors with a wider range of investments.
Mr Sherry the agreement would reduce red tape, duplication and compliance costs for business.
"It will facilitate the flow of capital investment for business and the opportunities between Australia and New Zealand."
Ms Dalziel said the relationship between New Zealand and Australia was as close as any two countries could be.
She said the move would smooth the way for businesses to raise capital.
Australia was New Zealand's top source of and destination for foreign investment.
"I think it's a win-win on both sides of the Tasman."
The Ministers said the agreement was a key advance of the Single Economic Market agenda.
Guidance for issues had been published.
Political and business heavyweights from both sides of the Tasman are meeting in Wellington today and tomorrow for the annual Australia New Zealand Leadership Forum.
- NZPA
