Marcus Beveridge, Principal, Queen City Law

Bradley So, Lawyer, Queen City Law

DECEMBER 2012

MIGRATION FROM ASIA: Issues and Challenges under the Investor Category

Topics• Introduction

• Trends in the Investor Category

• Intersection with Economic Developments

• Case Study- Comments and discussion

• Have we got it right?

• Proposal- Proposal to BMB for review

OVERVIEW

INCREASE IN MIGRATION FROM ASIA

• North Asia 18.1%

COMMON OPTIONS

• Skilled Migrant Category

• Long Term Business Visa

• Investor Category

FOCUS ON INVESTOR CATEGORY

• Policy is being reviewed BMB is looking for consultation

INTRODUCTION

TRENDS IN THE INVESTOR CATEGORY

TRENDS IN THE INVESTOR CATEGORY

NUMBER OF INVESTORS

• 2001 - 1088

• 2002 – 1087

• 2006 - 39

• 2012 – 167

INVESTED FUNDS

• 2001 - $1,132,000,000

• 2002 - $1,203,400,000

• Since 2009 – $1,225,500,000

INTERSECTION WITH ECONOMIC DEVELOPMENT

• a significant driver of economic development. NZ needs capital from overseas investors to fund construction projects, businesses, agriculture etc…

• QCL are involved in a number of commercial projects

CASE STUDY

Background • Couple who are Chinese

National aged 45

• Both have 10 years business experience as dentist

• Both couple have respectively been operating their own practice as a sole trader each business employ at least 5 staff

• IELTS 5.5

Settlement Fund• Building of their office

in husbands name valued at NZD $500,000.00

• Apartment under wife’s name valued at NZD $500,000.00

Investments Fund• Bank Deposits in China valued

at NZD $500,000 under husbands name

• Bank Deposits in China valued at NZD $500,000 under wife's name

• Shares valued at NZD $500,000.00 under husband’s name

Objectives of the Investor Policy

• Attract financial capital to local firms or government

Current Policy

• Considerably better than the 2006 policy

• Room for improvement

• Pros

• Active investment that will stimulate the economy

• Flexibility on where to invest

• Migrants attracted can contribute and maintain external links

• Cons

• Too onerous in terms of source of funds and the banking requirement

• Restrictive with ownership issue

HAVE WE GOT IT RIGHT?

PROPOSAL

Factors to consider

• It will encourage enterprise and innovation

• It will be invested in areas where it will contribute to the economic growth of NZ

• There should be a mechanism in place to ensure that the investment funds were earned or acquired lawfully

• The migrants that are attracted will be able to contribute to NZ and further establish external links with NZ

• The requirements are in line with other jurisdictions and will provide NZ with a competitive advantage against other countries