SIA Supports Govt’s Move For Optional Prospective Financial Information – Encouraging For NZ Companies Listing On NZX

The Securities Industry Association (SIA) supports the Government’s changes to Financial Markets Conduct Amendment Regulations 2025 to make prospective financial information (PFI) for initial public offerings (IPOs) optional in disclosure documents. The new regulatory settings come into effect in June 2025 and will help to encourage the pathway for growth for New Zealand companies, increase local investment opportunities for investors and invigorate our capital markets.

“We welcome these changes to regulatory settings that will remove barriers to listing and encourage and enable companies to grow and innovate using New Zealand’s capital markets as the pathway to do so. This in turn provides investors with more transparent and regulated local investment opportunities, and that investment stimulates the local economy,” says Tim Kiefte, SIA Chair and Head of Advisory at Craigs Investment Partners.

“The prescriptive nature of the current requirements for prospective financial information can be challenging, onerous and costly for businesses wanting to grow and innovate in New Zealand. The high costs of preparing PFI can be prohibitive for some companies, even large companies. The significant regulatory burden of an IPO process has been a factor for why some companies have opted to list on the ASX rather than the NZX. These issues were highlighted in the Capital Markets 2029 Report, which made the recommendation to remove the requirement to provide PFI for initial public offerings and allow issuers to provide PFI to investors if they chose to. These changes are critical to reducing the compliance and cost burden on NZX-listed companies and potential listers, facilitating opportunities for more Kiwis to access financial advice products and services and invest in New Zealand, and making our capital markets more internationally competitive,” says Tim.

Advertisement - scroll to continue reading

SIA’s executive director, Bridget MacDonald says “The Minister of Commerce and Consumer Affairs, Hon. Scott Simpson and Ministry of Business Innovation and Employment (MBIE) have been engaging with industry to understand the challenges of current settings, and importantly, taking a solutions-focused approach to making changes that support New Zealand’s businesses and capital markets. Our regulatory environment should help attract new listings and encourage listed companies to raise capital and grow while providing the necessary safeguards for investors and investor confidence.”

“In having the flexibility to choose via an opt-in regime, we expect that issuers will provide the most appropriate investment information for investors as appropriate to the investment opportunity given the intent is to gain confidence of investors and encourage investment in highly regulated and scrutinised markets," says Bridget.

"Government, agencies, regulators and industry all have a part to play in fostering our capital markets' success and boosting productivity for New Zealand. We are striving for the same outcomes – vibrant and growing capital markets, pathways for companies to access capital for growth and innovation, and opportunities for Kiwis to invest in their financial future and invest in New Zealand," says Bridget.

About SIA

SIA represents the shared interests of sharebroking, wealth management and investment banking firms that are accredited NZX Market Participants. SIA advocates for a trusted, vibrant and resilient financial market ecosystem that helps New Zealand's people, businesses and economy to grow and prosper.

SIA members employ more than 550 accredited NZX Advisers, NZDX Advisers and NZX Derivatives Advisers, and more than 540 Financial Advisers nationwide. The combined businesses of our members work with over 1 million New Zealand retail investors, with total investment assets well-exceeding $100 billion, including over $90 billion held in custodial accounts. Members also work with local and global institutions that invest in New Zealand.

© Scoop Media