On 12 June 2020, New Zealand’s Overseas Investment Office (OIO) released proposed changes to the OIO Regime which should facilitate NZ securitisations by removing the need for OIO approval for securitisation transactions. Under the current provisions, financing transactions are treated differently depending on the legal form of the transaction.
The OIO Act and Regulations will focus on the substance of the transaction. So long as the relevant transaction is, in substance, a financing transaction, it should not require consent under the Act. The NZ subcommittee has prepared a submission to the OIO supporting the proposed changes and advocating that the changes will remove unintended costs and time delays for lenders and ensure an efficient flow of funds to borrowers without affecting the purpose of the OIO Act.
Read the submission >