What is the goals?
• Understanding the nominated funds are acceptable investment.
• The investment period starts from AIP date, by email/letter
• Saving time after pre- stage and waiting for transfer and investment
Investment period begins
BJ7.25 When the investment period begins
• If the investment already meets the investment requirements, the required investment period
begins on the date of the letter of advising approval in principle.
• If the investment is made after approval in principle, the required investment period wil begin on
the date the investment requirements are met.
• The date the investment period begins is specified in the letter to the successful principal applicant
that advises the conditions on their resident visa (see BJ8.10).
F3.25.25 When the investment period begins
• If the investment already meets the investment requirements, the required investment period
begins on the date of the letter advising approval in principle.
• If the investment is made after approval in principle, the required investment period wil begin on
the date the investment requirements are met.
• The date the investment period begins is specified in the letter to the successful principal applicant
that advises of the conditions on their resident visa (see F3.30.10).
Acceptable investment in Inv 1
BJ3.10.25 Definition of 'acceptable investment’
a. An acceptable investment means an investment that:
i. is capable of a commercial return under normal circumstances; and
ii. is not for the personal use of the applicant(s) (see BJ3.10.30); and
iii. is invested in New Zealand in New Zealand currency; and
iv. is invested in lawful enterprises or managed funds (see BJ3.10.35) that comply with al relevant laws in force in New
Zealand; and
v. has the potential to contribute to New Zealand's economy; and
vi. invested in either one or more of the following:
o bonds issued by the New Zealand government or local authorities; or
o bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
o bonds issued by New Zealand firms with at least a BBB- or equivalent rating from international y recognised
credit rating agencies (for example, Standard and Poor's); or
o equity in New Zealand firms (public or private including managed funds and venture capital funds); or
o bonds issued by New Zealand registered banks; or
o equities in New Zealand registered banks; or
o residential property development(s) (see BJ3.10.40); or
o commercial property (see BJ3.15.5); or
o bonds in finance companies (see BJ3.10 (d)); or
o eligible New Zealand venture capital funds (see BJ3.10.45); or
o philanthropic investment (see BJ3.15.10); or
o ‘Angel funds or networks’ investments.
Note: New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.
Acceptable investment in Inv 2
BJ5.50 Definition of ‘acceptable investment’
a. An acceptable investment means an investment that:
i. is capable of a commercial return under normal circumstances; and
ii. is not for the personal use of the applicant(s) (see BJ5.50.1 below); and
iii. is invested in New Zealand in New Zealand currency; and
iv. is invested in lawful enterprises or managed funds (see BJ5.50.5) that comply with al relevant laws in force in New
Zealand; and
v. has the potential to contribute to New Zealand's economy; and
vi. is invested in either one or more of the following:
o bonds issued by the New Zealand government or local authorities; or
o bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
o bonds issued by New Zealand firms with at least a BBB- or equivalent rating from international y recognised
credit rating agencies (for example, Standard and Poor's); or
o equity in New Zealand firms (public or private including managed funds and venture capital funds); or
o bonds issued by New Zealand registered banks; or
o equities in New Zealand registered banks; or
o residential property development(s) (see BJ5.50.10) or
o commercial property (see BJ5.50.20); or
o bonds in finance companies (see BJ5.50 (d));or
o eligible New Zealand venture capital funds (see BJ5.50.15); or
o philanthropic investment (see BJ5.40.1); or
o ‘Angel funds or networks’ investments.
Note: New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.
Acceptable investment in PRC
F3.10.25 Definition of 'acceptable investment'
a. An acceptable investment means an investment that:
i. is capable of a commercial return under normal circumstances; and
ii. is not for the personal use of the applicant(s) (see F3.10.30); and
iii. is invested in New Zealand in New Zealand currency; and
iv. is invested in lawful enterprises or managed funds that comply with al relevant laws in force in New Zealand (see
F3.10.35); and
v. has the potential to contribute to New Zealand's economy; and
vi. is invested in either one or more of the following:
o bonds issued by the New Zealand government or local authorities; or
o bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
o bonds issued by New Zealand firms with at least a BBB- or equivalent rating from international y recognised
credit rating agencies (for example, Standard and Poor's); or
o equity in New Zealand firms (public or private including managed funds) (see F3.10.35); or
o bonds issued by New Zealand registered banks; or
o equities in New Zealand registered banks; or
o residential property development(s) (see F3.10.40); or
o bonds in finance companies (see F3.10.25 (c)).
Note: For the purposes of these instructions, convertible notes are considered to be an equity investment.
New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.
Acceptable investment in TRC
V3.120.5.25 Definition of 'acceptable investment'
a. An acceptable investment means an investment that:
i. is capable of a commercial return under normal circumstances; and
ii. is not for the personal use of the applicant(s) (see V3.120.5.30 below); and
iii. is invested in New Zealand in New Zealand currency; and
iv. is invested in lawful enterprises or managed funds that comply with al relevant laws in force in New Zealand (see
V3.120.5.35); and
v. has the potential to contribute to New Zealand's economy; and
vi. is invested in either one or more of the following:
o bonds issued by the New Zealand government or local authorities, or
o bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
o bonds issued by New Zealand firms with at least a BBB- or equivalent rating from international y recognised
credit rating agencies (for example, Standard and Poor's); or
o equity in New Zealand firms (public or private including managed funds) (see V3.120.5.35); and or
o bonds issued by New Zealand registered banks; or
o equities in New Zealand registered banks; or
o residential property development(s) (see V3.120.5.40); or
o bonds in finance companies (see (c) below).
Note: For the purposes of these instructions convertible notes are considered to be an equity investment.
New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.
Property already in NZ
• The property is under PA or joint(PA and SA) names, and the property
is the nominated funds.
• If the NZ property is the nominated funds at the pre- stage, then at
TOFI stage the property will be liquidated and invested in acceptable
investment.
At Pre & Post – AIP stage:
• The nominated funds are the PA’s
Equity in NZ
shares in the NZ company. PA
needs to provide the valuation of
firm(Public
the company showing PA shares
or Pravity)
valuation
• The acceptable investment is the
PA’s equity in the NZ company
Equity,
Shares or
At Pre & Post – AIP stage:
NZ Debt
• The nominated funds is the
value/clean cost of the shares
Securities
• The acceptable investment is the
clean cost of the shares
Market
• The nominated funds is the
value/clean cost of the bonds
Bonds
• The acceptable investment is
the clean cost of the bonds
• Most Residential Property
Residential
Development investments are
through NZ company
Property
• Similar to assessing investment in NZ
Development(
equity(shares valuation in assessing
New
nominated funds, company’s equity
Development)
as a completed investment.) we
don’t need to assess underline
investment
• The nominated funds is the
valuation of the commercial
Commercial
property
Property in
• The acceptable investment is the
how much PA or his company
NZ
invests into the commercial
property/valuation of the
commercial property
• Can the PA claim the NZ property as acceptable investment, and PA
rents out the property for commercial return and does not use as
personal use?
• Son-in-law gives NZ company shares to PA under Inv 2 application, is
it an acceptable investment for pre & post application? the
investment was made by PA?