Capital market reforms to power economic growth

The Government is seeking feedback on the next phase of its capital market reforms, aiming to lower the cost of raising money for Kiwi businesses and deliver stronger returns for everyday investors, says Commerce and Consumer Affairs Minister Cameron Brewer.

"Economic growth is this Government's central priority, and deep, competitive and trusted capital markets are central to that ambition," Mr Brewer says.

"It comes down to one thing: the cost of capital. When it costs too much for a Kiwi business to raise money, good ideas go unfunded and businesses that should be expanding stay stuck. Our job is to bring that cost down, to make raising money here easier and cheaper, and to make investing here more rewarding.

"When our capital markets work well, everyone benefits. Businesses can raise the money they need to take the next step, and the millions of Kiwis with KiwiSaver see it in stronger returns on their savings.

"This is the second phase of our reforms. Last year we made a series of common-sense changes to cut compliance costs, reduce red tape, and remove barriers to listing on the NZX. We made forward-looking financial information optional for NZX listings and have agreed to lift the mandatory climate reporting threshold to $1 billion in market capitalisation.

"Now we're going further. We've released a discussion document seeking feedback on how to modernise the rules that govern our capital markets, so they keep pace with rapid innovation and cut the costs and barriers that hold businesses back. We want New Zealand to be globally competitive.

"That includes eight targeted proposals for change, all aimed at lowering the cost of capital and removing barriers to raising it, while keeping the investor protections that give people the confidence to put their money to work."

The eight areas open for feedback are: product disclosure statements, director and issuer liability, Catalist market settings, Unlisted Securities Exchange audit requirements, crowdfunding and peer-to-peer lending limits, wholesale investor settings, auditor liability, and broker activity and visibility of offers.

"These are sensible, targeted changes and a great next step. We want to hear from businesses, fund managers, investors, financial advisers, and everyone with a stake in these markets about where the rules are getting in the way," Mr Brewer says.

"Your ideas will help make sure our markets are dynamic and built to deliver the capital our businesses need to grow, from a start-up in a garage to a company competing on the world stage. I encourage anyone with an interest to have their say through MBIE’s website at https://www.mbie.govt.nz/have-your-say/consultation-on-capital-markets-reform.

"We're fixing the basics and building the future, so the businesses and investors who drive a stronger economy have the markets they need to back themselves," Mr Brewer says.

Notes to editor:

A discussion document released today seeks feedback on both the overall direction of reform and eight specific areas where change could make a difference:
Product disclosure statements
Director and issuer liability
Catalist market settings
Unlisted Securities Exchange audit requirements
Crowdfunding and peer-to-peer lending limits
Wholesale investor settings
Auditor liability
Broker activity and visibility of offers
The consultation opens today and runs for six weeks, closing on Tuesday 25 August 2026. To read the discussion document and have your say, visit the Ministry of Business, Innovation and Employment's website: https://www.mbie.govt.nz/have-your-say/consultation-on-capital-markets-reform. ...