This section contains information on the investor test.

On this page:

  1. Introduction
  2. Legislation
  3. Business experience and acumen
  4. Demonstrated financial commitment
  5. Good character
  6. Ineligible individual(s) under the Immigration Act 2009
  7. Statutory declaration
  8. Apply for consent
  9. Disclaimer
  10. Downloads

Introduction

All applications for consent are tested against four core investor criteria:

  • business experience and acumen
  • financial commitment
  • good character, and
  • absence of ineligible individual(s) under the Immigration Act 2009.

The OIO informally refers to these collective criteria as the “investor test”.

The investor test for fishing quota, sensitive land and significant business assets is effectively the same.

Legislation

The legislation references for the investor test are:

  • Section 16 (sensitive land applications)
  • Section 18 (significant business asset applications)
  • Section 57 G of the Fisheries Act (fishing quota applications).

For more information about how the good character and immigration criteria are applied, see section 19 of the Overseas Investment Act 2005 and section 57 I(2) of the Fisheries Act 1996.

Business experience and acumen

The business experience and acumen criterion provides that the individual(s) must have practical knowledge and abilities relevant to the overseas investment. The OIO is looking for evidence that demonstrates and explains:

  • substantial experience in the same industry and type of investment
  • a track record of successful business activity that demonstrates generic business experience and acumen
  • that sufficient “nouse” exists to oversee local managers engaged to undertake the investment on the investor’s behalf
  • how the background, qualifications and work experience of the individuals are relevant to the proposed overseas investment.

Evidence required by the OIO may include:

  • if the relevant overseas person is an individual, a curriculum vitae detailing the individual's background, qualifications and work experience
  • if the relevant overseas person is not an individual, a curriculum vitae detailing the background, qualifications and work experience of the individuals with control of the relevant overseas person
  • if a manager or consultant is to be or has been contracted to manage the overseas investment in sensitive land, a curriculum vitae detailing the manager or consultant's background, qualifications and work experience and, if available, a copy of any contract entered into between the overseas person and the manager or consultant.

The level of business experience and acumen required to satisfy this condition may vary according to the nature of the investment subject to the OIO application. For instance, individuals planning to purchase lifestyle or residential properties may need only demonstrate fairly generic business expertise and acumen to satisfy this condition. See lifestyle properties and new migrants.

Demonstrated financial commitment

The OIO requires evidence of the relevant overseas person having demonstrated financial commitment to the proposed overseas investment in sensitive land. Evidence may include:

  • setting aside or committing resources to the investment
  • securing an advance or loan to undertake the investment
  • having already funded aspects of the investment, for example, the overseas person has already acquired part of the business assets or has already undergone an expansion into New Zealand
  • having paid the deposit towards the purchase or entered into a contract for sale and purchase.

Having access to capital to make investments does not demonstrate a financial commitment to a particular investment. The OIO requires specific evidence that a particular part of the capital has been set aside for the investment, or that the particular capital required has been called up.

Good character

Consent cannot be granted unless the people who will control the investment are of good character. We look at whether people have broken the law (whether they have been convicted or not), whether they are under investigation, and whether allegations have been made against them, among other things.

Applications must include information about the character of the people who will control the investment, and we undertake our own checks. The people who will control the investment will normally be the directors and major shareholders of companies, and the trustees of trusts, though we may require information about anyone with control of the investment.

Read more about the Good Character Requirements

Ineligible individual(s) under the Immigration Act

This part of the investor test provides that the relevant overseas person, or the individual(s) with control of the relevant overseas person, must not be individual(s) of the kind referred to in section 15 or 16 of the Immigration Act 2009.

Sections 15 and 16 of the Immigration Act provides that no visa or entry permission may be granted, and no visa waiver may apply, to any person who, broadly:

  • has been sentenced to imprisonment:
    • for more than 5 years, or
    • for more than 12 months in the previous 10 years
  • has been the subject of a removal order
  • has been removed or deported from New Zealand or any other country
  • is likely to commit an offence that is punishable by imprisonment
  • is, or is likely to be a threat or risk to security, public order or the public interest, or
  • is a member of a terrorist entity designated under the Terrorism Suppression Act 2002.

Section 19(2) (for sensitive land and significant business assets applications) and section 57I(2) of the Fisheries Act (fishing quota applications) provides guidance on applying the immigration criteria. Note that section 17(1) of the Immigration Act allows the Minister of Immigration to make a special direction allowing a visa or entry permission to be granted despite sections 15 and 16 of that Act.

Statutory declaration

A statutory declaration will usually be required with each application that evidences the good character and immigration criteria. See how to prepare statutory declarations for the OIO for further information and example text.

Apply for consent

Further factors may need to be satisfied before consent can be granted, depending on the nature of the investment.

For further information on how to apply see:

Disclaimer

This website provides general information only. The OIO and LINZ do not assume any responsibility for giving legal or other professional advice and disclaim any liability arising from the use of the information. If you require legal or other expert advice you should seek assistance from a professional adviser.

Last Updated: 26 April 2016