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Regulated parties and key stakeholders

Key roles in the overseas Investment system

The Treasury

The Treasury is responsible for policy advice relating to the Overseas Investment Act 2005 (the Act) and associated regulations.

Land Information New Zealand (LINZ)

LINZ's functions in the Overseas Investment Regulatory System are:

  • Information and education to improve understanding of the law and influence the quality of applications.
  • Engagement and building partnerships with other organisations and agencies through a strategic and targeted programme to grow understanding of the overseas investment regime and increase compliance and self-regulation.
  • Assessment of applications and recommendations to the Minister, or decision where appropriate, whether consent should be granted and what conditions should be required.
  • Intelligence analysis and due diligence supported by operational risk and compliance assessments, and information sharing as an active participant in New Zealand's intelligence network.
  • Monitoring of overseas investors, investments and the wider environment to identify potential breaches and other risks to New Zealand.
  • Enforcement and investigation of potential breaches to manage risks to New Zealand, including ensuring investors dispose of their sensitive New Zealand assets if necessary.

Standing Committee

Members of the Standing Committee provide advice to LINZ on national interest and national security risks that certain applications might pose.

The Committee includes:

  • Intelligence and security agencies,
  • the Department of Internal Affairs,
  • the Department of Prime Minister and Cabinet,
  • Inland Revenue,
  • Land Information New Zealand,
  • Ministry of Business, Innovation and Employment,
  • Ministry of Defence,
  • Ministry of Foreign Affairs and Trade,
  • Customs,
  • Police,
  • New Zealand Trade and Enterprise,
  • Reserve Bank,
  • The Treasury

Partner agencies

Partner agencies are:

  • Department of Conservation,
  • Walking Access Commission,
  • Immigration New Zealand,
  • Inland Revenue,
  • New Zealand Trade and Enterprise,
  • Ministry of Culture and Heritage,
  • Ministry of Transport,
  • the Ministry of Primary Industries,
  • Heritage NZ,
  • QEII Trust, and
  • Ministry of Business, Innovation and Employment

These agencies (among others, where necessary for specific transactions) provide information to support decision making on applications that relate to their portfolios.

For example, the Department of Conservation and the Walking Access Commission in relation to applications involving sensitive land.

Collaboration and information-sharing between system agencies

Regular members of the Standing Committee may share information, in general terms, if they have reasonable grounds to believe that disclosure of that information is necessary for the purpose of managing national security and public order risks associated with overseas investments. Other agencies may attend Standing Committee meetings where particular expertise is required (for example, Ministry of Culture and Heritage may provide advice on transactions involving a significant media business).

As part of the 2021 review of third-party funding of its overseas investment system functions, LINZ consulted on fees proposals with stakeholders.

Regulated parties and main stakeholders

Regulated parties

  • Overseas investors in sensitive assets.

Main stakeholders

  • Investment advisors (e.g. investment bankers, and economic development agencies such as NZTE and Auckland Unlimited)
  • Lawyers (e.g. NZLS and ADLS)
  • Real estate agents and their regulatory and professional entities (e.g. REINZ and REA)
  • Partner agencies
  • Legal Reference Group
  • Iwi groups.

Processes for engagement with regulated parties and stakeholders

LINZ undertakes a range of regular and ad hoc consultation and engagements. Engagement can take many forms, such as interviewing investors, testing draft forms with lawyers, or workshopping processes with partner agencies. For example, LINZ:

  • convenes a Legal Reference Group, which is a small group of lawyers experienced with the Act who provide free and frank advice on issues of relevance.
  • presents regularly to lawyers, real estate agents, investment advisors, and partner agencies to improve understanding of the regime which increases compliance with it. We have a key performance indicator (KPI) and Statement of Performance Expectations (SPE) of 40 presentations/articles per year to measure our activity.
  • regularly engages with investors, lawyers, investment advisors, and partner agencies.

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Last updated: 
Wednesday, 8 September 2021