The purpose of the investor test is to determine whether investors are unsuitable to own or control sensitive New Zealand assets.

What does the test cover?

The investor test sets out the types of behaviour and history we consider show that the overseas investor is a potential risk to New Zealand. 

The test is made up of 2 groups of factors: character and capability.

The test character factors include:

  • convictions resulting in imprisonment,
  • corporate fines both in New Zealand and overseas,
  • being ineligible to come to New Zealand.

The test capability factors include:

  • prohibitions on being a director, promotor, or manager of a company,
  • penalties for tax avoidance or evasion,
  • unpaid tax of $5 million or more.

See the full list of test character factors - section 18A(4)(a) and (b) of the Act.

See the test capability factors - section 18A(4)(c)-(f) of the Act.

Who needs to meet the investor test?

The relevant overseas person and all individuals with control of the relevant overseas person must meet the investor test.

People who are not overseas persons do not need to meet the test.

We decide who the relevant overseas person and/or individuals with control of the relevant overseas person are for each application.

Relevant overseas person and individuals with control

What information do I need to provide?

When you apply for consent, you will be asked if any of the investor test factors are established. If you answer ‘Yes’ to any factor, you will need to provide sufficient evidence with your application to show why this does not make you unsuitable to own or control sensitive New Zealand assets. We will consider the context in which the situation occurred and your action afterwards.

You will meet the test if, either:

  • none of the investor test factors are established

or

  • if one or more of the investor test factors are established, the decision-maker is satisfied that this does not make you unsuitable to own or control sensitive New Zealand assets.

 

Last Updated: 22 March 2021