NZX backs proposed reforms to capital markets

The government is looking to reform New Zealand’s capital markets, which have been seen as costly and burdened by complex regulatory settings and driving businesses to steer clear of the NZX.

Minister of Commerce and Consumer Affairs Cameron Brewer said too many businesses were looking to overseas markets that offered a lower cost to raise capital, as well as greater scale and listing opportunities.

“We need markets that reward enterprise, allocate capital efficiently, and attract investment from here and abroad,” he said.

“The more capital we can attract and deploy into productive activity, the better off New Zealand will be.”

NZX said it supported phase two of capital market reforms, which were aimed at lowering the cost of raising capital while making public markets more attractive and supportive of economic growth.

“As the operator of New Zealand’s public markets, NZX sees first-hand the challenges and opportunities facing New Zealand businesses seeking growth capital,” NZX acting chief executive Graham Law said.

“As a small economy competing globally for investment, improving market depth, liquidity and policy settings are critical to ensuring capital is available, affordable and accessible.”

Institute of Directors chief executive Kirsten Patterson said said the reforms could increase liquidity on the NZX capital markets and encourage new listings.

“We believe the proposals are a step in the right direction but it is important that the reforms are proportionate. They should ensure appropriate director liability focused on areas where directors have direct influence and improve regulatory certainty for all companies.”

Chartered Accountants Australia and New Zealand said it would contribute to the discussion on how New Zealand can strengthen the flow of capital throughout the economy.

“It is appropriate to consider whether some settings can be modernised to reduce unnecessary costs, improve access to funding while maintaining appropriate investor protections,” NZ country head Peter Vial said.

The government was seeking market feedback on a range of issues from people with practical insight into where the real barriers sit.

“We are seeking both specific feedback on the proposals in this document and broader views on the changes needed to lift the performance of our capital markets over time.”

Brewer said New Zealand had many of the ingredients of an attractive investment destination, but reforms were required to reduce costs for listed businesses and others seeking to list.

While there had already been a number of changes over recent years, Brewer said more work was needed.

The potential reforms focused on the following areas:

• disclosure rules
• director liabilities
• smaller and alternative market settings
• capital-raising limits
• and aspects of the wholesale investor framework.

“The government’s objective is straightforward: capital markets that are trusted, competitive, and focused on supporting economic growth,” Brewer said.

“That means maintaining appropriate investor protections and market integrity, while being willing to challenge settings that are too costly, too uncertain, or no longer fit for purpose.”

The deadline for submissions to the Ministry of Business, Innovation and Employment was 5pm Tuesday, 25 August 2026.