NZ to boost business growth as part of capital markets reforms

Benefits include reduced costs for smaller listed companies.

New Zealand has announced further capital markets reforms aimed at boosting business growth.

According to the Ministry of Business, Innovation & Employment (MBIE), the changes being made by the Kiwi government are designed to lower the costs for smaller listed firms and encourage new sharemarket listings whilst at the same time improving visibility over private asset investment.        

The reforms include new asset disclosure categories and amendments to the climate-related disclosures regime, which come after it was recently made voluntary for a company to provide prospective financial information during an initial public offering (IPO).

In terms of climate reporting, the mandatory threshold for listed firms will rise from NZ$60m market capitalisation to NZ$1b, meaning smaller businesses will no longer be required to report on their climate risks and opportunities.

Managed investment scheme managers will also be removed, whilst director and company liability settings will be adjusted to reduce unnecessary risk and cost.

The law mandating these climate reporting changes is expected to be passed in 2026, MBIE highlighted.

"New Zealand was first in the world to require [climate reporting]," Commerce and Consumer Affairs Minister Scott Simpson pointed out. "Whilst the intentions were solid, the rules proved too onerous and have become a deterrent for potential listers.

"It made sense to review these after the first year of reporting. We have listened to the feedback, examined how the regime operates in practice, and are now resetting the settings accordingly."

Meanwhile, to improve the visibility of private asset investment by managed funds, the government is rolling out new asset disclosure categories.

"Assets held by managed funds, including KiwiSaver, must be listed on the Companies Office's Disclose Register," MBIE noted.

"From March 2027, fund managers will need to include whether the asset is in New Zealand or overseas and what asset class it falls into – for example, debt, infrastructure, unlisted equities."

The goal is to allow investors to be more informed about which funds invest in private assets and how they are performing.

As for the recent change in the IPO requirements, the intended outcomes include lower listing costs.

"To future-proof our markets, we need to ensure listing remains an attractive option for raising capital in New Zealand," Simpson said.