Holding Restrictions – Investment Funds – New Zealand
Restrictions on customers
Customers domiciled in New Zealand are not allowed to hold funds through CBL. There are no restrictions on New Zealand domiciled ultimate beneficial owners.
Certain funds may also impose specific restrictions on investor domicile. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Restrictions on holdings by foreign persons
There are no general restrictions on foreign customer residency for holdings held through CBL. However, foreign customers are subjected to the following legislation:
- the Overseas Investment Act 2005;
- the Overseas Investment Regulations 2005.
The consent of the Overseas Investment Office is required when an acquisition by an "overseas person" is of:
- 25% or more ownership or control interest in securities of a person where the consideration paid; OR
- the value of the assets of the target, exceeds NZ$100 million.
Restrictions on settlement
There is no general restriction on settlement on New Zealand investment funds through CBL. However, certain funds may impose specific settlement/transfer restrictions. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
The information contained in the Holding Restrictions is based on the legal opinion obtained by CBL that was issued on 3 October 2019. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. If there is discrepancy between the information provided by CBL and the local laws and regulations, then the latter shall prevail. The Holding Restrictions do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.