Hon Kris Faafoi
Minister of Commerce and Consumer Affairs
9 September 2019 PĀNUI PĀPĀHO
Commerce and Consumer Affairs Minister, Kris Faafoi, says key areas of opportunity have been highlighted in a report
released today to ensure New Zealand’s capital markets continue to support sustainable economic growth.
The Capital Markets 2029 report is from an industry-led working group initiated by NZX and the Financial Markets
The working group has been investigating the current framework for New Zealand’s capital markets.
“The Report indicates areas where our capital markets are working well, and this is pleasing to see.
“New Zealand’s equity market has shown good growth in comparison to global counterparts, and our debt and secondary
markets are performing well.
“In addition, KiwiSaver is growing the domestic pool of savings which are available to invest in New Zealand,” Minister
The Report also outlines opportunities across a range of areas that affect capital markets activity.
“There are a number of areas where work is already underway and the recommendations made by the working group will be
taken into account as work progresses.
“For example, earlier this year the Wellbeing Budget established a new $300 million fund to help fill the ‘capital gap’
for New Zealand firms which expand beyond the early start-up phase. Part of this investment is ensuring the right
capabilities are attracted into this market, to aid the growth of dynamic and innovative New Zealand firms,” Mr Faafoi
The Venture Capital Fund Bill is now being considered by Select Committee and public submissions close on 23 September.
Mr Faafoi also said the recommendations relating to financial markets regulation would provide useful input into an
existing Financial Markets Conduct (FMC) Act monitoring work programme.
“This monitoring programme assesses whether the regulatory changes made by the FMC Act are meeting intended objectives.
It will be completed by 2022, allowing sufficient time for the regulation to bed-in and for long-term outcomes to
“Also, a review is currently underway to consider options around the investment mandate for KiwiSaver default providers
and changes in this area will have flow-on effects for capital markets,” Mr Faafoi said.
The Capital Markets 2029 working group has called on industry to embrace the recommendations in the Report so that both
users and providers of capital benefit from strong capital markets.
“I expect this Report will provide an important starting point for further discussions within industry to ensure our
capital markets provide economic growth that supports the wellbeing of New Zealanders,” Kris Faafoi said.
Capital Markets 2029 Report is available here