NZX chief executive Mark Peterson. Photo: RNZ / Dom Thomas
Changes to market regulations making prospective financial information (PFI) optional will make the New Zealand stock exchange a much more attractive option for local businesses, says its head.
The changes to the Financial Markets Conduct Amendment Regulations 2025 would mean companies trying to raise capital by listing on the NZX would no longer need to come up with up several hundred thousands of dollars to do so.
NZX chief executive Mark Peterson said it meant that mandatory PFI was "one of the most difficult and expensive requirements" for a company listing, and drove some companies away from the NZX to offshore exchanges.
"NZX understands the cost of providing PFI ranges from around $150,000 to $500,000 and is a major factor that causes New Zealand advisers to recommend companies list elsewhere where PFI isn't mandatory."
Peterson said the move by Commerce Minister Scott Simpson and the government would "provide investors more choice of investable product and enable better access to capital for New Zealand businesses. The change removes unnecessary red tape and will assist in New Zealand's capital markets being more competitive with international peers."
He also said "the positive leadership" of former Commerce Minister Andrew Bayly had played a role in leading the capital market reforms.
The changes come into force on 12 June.
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