The New Zealand and Australian governments have just simplified the business of trans-Tasman securities offerings.
The change is effective from June 13 2008, although it has been seven years in the making. The result of all that negotiation is not perfect, but it is a good first step towards closer trans-Tasman relations in the financial services sector.
Essentially, mutual recognition removes duplication and extra cost, by streamlining the way entities can raise funds from investors in both markets.
So an eligible New Zealand offeror can offer into Australia using its New Zealand offer documents, and vice versa, provided minimal requirements are met.
The regime is particularly attractive for New Zealand offerors wishing to offer into Australia, as to date only limited exemptions have been available from Australian law, and full Australian offer documents have been required.
To access a copy of Chapman Tripp's bulletin on the essential aspects of the new regime, and where it could go further please click on the PDF above.