Foreign funds to be welcomed
Foreign, unlisted collective investment schemes, such as US mutual funds, may soon be available in New Zealand.
Wednesday, February 10th 1999, 12:00AM
New Zealand investors may soon be able to invest directly in overseas collective investment schemes, such as United States-based mutual funds.The Securities Commission is expected to announce, later this week, a new policy related to promoting such schemes.
Currently all these schemes, except for Australian unit trusts are banned in New Zealand
The commission says, in a recent discussion paper, that it had received a large number of enquiries over the past few years about its policy on providing exemptions for overseas schemes.
Commission solicitor Laurie Bucknell says a number of submissions on the paper had been reviewed and a policy announcement was imminent.
He says unlisted schemes in the United States, the United Kingdom and other jurisdictions will be given exemptions, but certain rules will apply.
Tower Managed Funds chief executive Jim Minto has mixed views on the idea of letting these schemes be promoted in New Zealand.
He says they should only be made available to the more sophisticated end of the market, particularly those people who use a professional financial adviser.
Investment and Insurance Savings Association acting chief executive Vance Arkinstall says the association generally supported the idea of allowing these schemes to be promoted in New Zealand.
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