7 April 2016
OIO refutes lawyers’ claims
The Overseas Investment Office (OIO) has not changed the way it interprets the Overseas Investment Act 2005 to define
“overseas person” – despite what is being claimed by law firm Russell McVeagh.
The claims relate to the OIO’s treatment of custodians that own shares in companies on behalf of New Zealand and
overseas investors.
“The OIO’s view has always been that if a custodian is an ‘overseas person’, it may need consent to invest in sensitive
New Zealand assets – or in a company that holds sensitive land,” said OIO Group Manager Annelies McClure.
This OIO’s approach is consistent with that of other regulators, such as the Takeovers Panel, and is well-known to
lawyers specialising in overseas investment.
“Lawyers also know the OIO has previously exempted custodians from the need for consent and focussed instead on the
custodian’s underlying overseas investors.
“Russell McVeagh is certainly aware of our approach, having obtained an exemption for a custodian it represented as
recently as 2014.
“We – and I’m sure the market also – would be interested in understanding why Russell McVeagh has now changed its view.
“If it has taken a different view, then it has done so without consulting the OIO. Our view about custodians will come
as no surprise to lawyers familiar with the Overseas Investment Act,” Ms McClure said.
More information about how the OIO treats custodian companies is available from the LINZ website.
Ends