KEY POINTS:
The taskforce working on a blueprint for New Zealand's financial system floated ideas yesterday, some of which are not favoured by the Securities Commission.
An interim report by the Capital Market Development Taskforce contained proposals to improve businesses' access to capital and reduce the costs of raising capital.
They include reducing the documentation for capital raisings, changes to NZX listing rules and addressing tax anomalies.
The recommendations relating to NZX Listing Rules are generally consistent with proposals NZX released for consultation on Tuesday.
These include allowing companies to produce a simpler offer document in some circumstances, and simplifying and clarifying exemptions under which firms are able to issue securities without offer documents.
The proposals include easing requirements for listed debt issuers, and raising thresholds for subsequent equity issues by listed companies before prospectus disclosure and shareholder approval is required.
It is also proposed the timeframes for rights issues be reduced.
The taskforce is also looking at increasing the amount of capital that can be raised in secondary offerings without shareholder approval.
The taskforce wants to make exemptions for non-public offers more practical. It suggests amending the Securities Act to allow persons who have invested $500,000 to make incremental investments without a prospectus or investment statement.
A streamlining of Overseas Investment Commission consents is also suggested, as is an easing in the definition of material transactions to 10 per cent of average market capitalisation.
In Australia, companies can make offers to up to 20 people in 12 months for an aggregate of A$2 million ($2.37 million) without a prospectus.
The Securities Commission has not been receptive to a similar rule in New Zealand, the report said.
- NZPA
