|
|
 |
|
|
 Exchange Regime New Zealand has a largely unrestricted currency exchange regime. Almost all exchange controls were lifted at the end of 1984. Since March 1985, the New Zealand dollar, known as the “Kiwi”, has been allowed to float freely. The absence of exchange controls has had significant effects on the New Zealand economy, including: all remittances of money can be made through registered banks (subject to UN sanctions, disclosures required under New Zealand's financial transaction reporting rules and anti-terrorism financing rules); interest, profits and dividends earned in New Zealand can be freely remitted to non-resident persons (subject to non-resident withholding tax considerations and other taxation issues discussed in section 5 above); and no approval is required in respect of the repatriation of non-resident capital, including financial gains or capitalised profits. New Zealand does, however, have foreign investment control under the OI Act and the OI Regulations. These controls have already been discussed in detail in sections 3 and 4 above. While there are no specific economic incentive regimes operating in New Zealand due to New Zealand's unequivocal policy on free trade, foreign companies investing in New Zealand in certain sectors such as tourism or the exportation of locally manufactured goods (which directly contribute to foreign exchange earnings), are particularly welcomed by the New Zealand government through such bodies as Tourism New Zealand and New Zealand Trade and Enterprise, which provide assistance in these areas. Some regional authorities also provide limited assistance to investors in their particular area. Banking and financial services In line with the overall Government policy of freer markets, banking licences are available to any company that can demonstrate banking expertise and good standing in the financial community. There are currently sixteen registered banks in New Zealand. Most commercial banking services are provided by the major registered trading banks, namely the ANZ National Bank Limited, ASB Bank Limited, Bank of New Zealand, The Hongkong and Shanghai Banking Corporation Limited and Westpac Banking Corporation. These banks offer a variety of services. Most financial accommodation is secured by way of security over the assets of the company, and often personal guarantees from major shareholders are required. There are also a wide range of other financial lending or related finance service institutions such as building societies, merchant banks, finance companies, trustee companies, insurance companies, credit unions, and stock and station agents. The major commercial banks also provide other common commercial services, including letters of credit, bills of exchange, commercial bill facilities, term loans and foreign exchange. Reserve Bank The Reserve Bank of New Zealand is New Zealand's central bank and operates under the Reserve Bank of New Zealand Act 1989 and other ancillary legislation. The Bank's three main functions are: The operation of monetary policy for the purposes of maintaining price stability. The legislation provides that the Minister of Finance and the Governor of the Reserve Bank must have a separate agreement setting out specific targets. The current policy target requires the maintenance of underlying annual inflation within a one to three percent range, but must also have due regard to the government's overall broader economic goals. The promotion of a sound and efficient financial system. This is essentially effected by registering and regulating banks, and monitoring each bank's practices and ongoing condition. Meeting the currency needs of the public, as well as providing a range of payment and clearing services. Financial markets Generally speaking, New Zealand's financial markets (equity, debt, futures and options) are principally regulated by industry regulators via a layer of statutory regulation. Securities and stock exchanges are required to be registered and are regulated by the New Zealand Securities Commission (NZSC). Currently, New Zealand has one registered exchange, New Zealand Exchange Limited, which operates the main stock exchange (NZSX), a debt market (NZDX) and an alternative exchange (NZAX). The NZSC authorises futures dealers. No person may deal in futures (widely defined and including options) unless authorised by the NZSC. The NZSC has granted class authorisations to futures and options participants under the New Zealand Exchange Limited (NZX) Futures and Options Rules and participants in the Sydney Futures Exchange (SFE). |
|
|
| PHONE +64 9 375 8700 FAX +64 9 309 4494 DX CP 24017 EMAIL lawyers@heskethhenry.co.nz |
STREET ADDRESS 41 Shortland Street Auckland 1010 New Zealand |
 ENGAGEMENT TERMS TERMS OF USE |
 SITEMAP WORKSITE |
|
HOMEABOUT HHOUR EXPERTISEOUR PEOPLENEWSPUBLICATIONSCAREERSINTERNATIONALCONTACT US |
|
|