14/12/2011 Author: Tony Griffiths

Key re-election keeps NZ fund reform on track

The re-election last month of New Zealand prime minister John Key, the driving force behind efforts to boost the country’s hedge fund centre, has put plans for a new fund domicile regime back on track.

Earlier this year, Key’s government adapted legislation so that the country’s Portfolio Investment Entity (PIE) fund structure would offer a variable tax rate for foreign investors as of 1 April 2012, allowing non-residents to invest in New Zealand and foreign markets at a reduced tax rate.

“[Key’s] re-election means that plans will likely go ahead, creating an environment that is highly attractive for hedge fund managers looking to access Asia-Pacific,” said Stephen Abletshauser, founder of Palladium Trust Services.

New Zealand is also due to overhaul its general financial regulation by April 2013, bringing it to a higher, European standard.

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