Changes to the Overseas Investment Act

On 28 May 2020, the Overseas Investment (Urgent Measures) Amendment Act 2020 (Urgent Measures Act) was passed. This Act amends the Overseas Investment Act 2005 to balance the important role overseas investment will play in supporting New Zealand’s economic growth and recovery, while also seeking to ensure New Zealand’s interests are protected. Key changes include among others: - A ‘national interest’ test, to allow the Government to decline consent for certain transactions ordinarily screened if they are considered contrary to New Zealand's national interest. - A temporary emergency notification requirement, that will apply to transactions not ordinarily screened. The Government will be able to review all new controlling investments in New Zealand businesses and assets. This will require a large number of transactions that would not ordinarily be screened to be notified. The Government will be able to impose conditions on, prohibit, or require disposal of those investments if contrary to New Zealand's national interest. - A call-in power, to take effect once the temporary emergency notification requirement is removed, to enable the Government to review investments in ‘strategically important businesses’ that are not ordinarily screened and impose conditions on, prohibit, or require disposal of those investments if there is a significant risk to national security or public order.

• Type:

  • Entry and establishment (Approval and admission)

• Sources:

  • Land Information New Zealand, Changes to the Overseas Investment Act, https://www.linz.govt.nz/overseas-investment/changes-overseas-investment-act#:~:text=To%20manage%20this%2C%20the%20Government,Urgent%20Measures)%20Amendment%20Act%202020.&text=The%20key%20amendments%20are%3A,interest%20assessment%20for%20some%20transactions, 16 Jun 2020
  • Lexology, Overseas investment changes: another facet of the COVID-19 response, https://www.lexology.com/library/detail.aspx?g=0942d30a-1c03-45e7-a9b0-4254251b8b85, 29 May 2020