Appendix.pdf

21 October 2024

Hon. Erica Stanford

Hon. Melissa Lee

Minister of Immigration

Minister of Economic Development
Parliament Buildings

Parliament Buildings
WELLINGTON

WELLINGTON

Dear Ministers

Thank you for the opportunity to meet with you both last week, alongside MBIE o icials, to
discuss your proposals to evolve the Active Investor Plus (AIP) visa settings. It was very useful to
hear from you directly regarding your objectives for the investor migration programme, and to
discuss how New Zealand Trade and Enterprise (NZTE) can support you in delivering on those
objectives.

Broadening direct investments and managed funds

As discussed at the meeting, NZTE can quickly broaden the direct investments and managed
funds we approve under the AIP settings. As you know, we have been compelled to decline a
range of potential investments given they have not aligned to the stated objectives or
instructions of the programme, as established by the previous Government. As such,
investments in aged care facilities, tourism infrastructure, forestry, public infrastructure,
horticulture, and those that have not met the “globally successful” or “high growth” criteria have
not been approved.

For these types of investments to be approved, your direction via Immigration Instructions is
required. If you would like this to occur, s9(2)(g)(i)

Execution of changes

We have made some suggested changes of the Immigration Instructions for consideration by
MBIE o icials. The earlier that these instructions can be agreed and issued, the earlier we can
broaden the scheme to reﬂect your intentions.

Our team are now engaged with MBIE o icials (Immigration Policy and Investment Policy) and
can ﬁnalise the revised Immigration Instructions for direct investments and managed funds
(BN1 and Appendix 15).

To achieve the greatest impact from making changes to Immigration Instructions, we
recommend that these changes are announced. That will ensure market participants are aware
of the changes, including those that have previously been declined. We believe these changes
will be well received and will not create increased complexity to the programme.  NZTE will also
support communications of these changes.

I trust that the proposed draft changes to Immigration Instructions meet with your expectations,
and I am available to discuss any issues further at your request.

Yours sincerely

Peter Chrisp
Chief Executive

cc. Nic Blakeley (Deputy Secretary, Labour, Science, and Enterprise, MBIE); Jivan Grewal (GM
Employment, Skills and Immigration Policy MBIE), Dean Ford (GM Technology and Innovation,
MBIE).

Annex 1 – Amendment to BN 1

BN1 Objec ve – Exis ng instruc ons
“The objec ve of the Ac ve Investor Plus visa category is to a ract skilled and experienced ac ve
investors to help build globally successful New Zealand businesses that align with Government’s
objec ves, by providing resident visas to those who wish to par cipate in New Zealand’s investment
ecosystem and make a signiﬁcant contribu on to New Zealand's economy.”

s9(2)(g)(i)

Annex 2 -Amendments to Appendix 15

Appendix 15 – Existing instructions
Deﬁnitions
1.  “Unless the context requires otherwise:
Objective means the objective of the Active Investor Plus visa as set out in BN1 of the
Immigration New Zealand Instructions for the Active Investor Plus visa.
Principles means the principles for assessing whether direct investments or managed
funds are acceptable investments, being an investment:
1.  that clearly contributes to the Government’s economic strategy (by being high
growth potential ﬁrms or contributing to positive social and economic impacts);
2.  is into legitimate Investee Entities or managed funds and proper veriﬁcation is
conducted to ensure this1; and
3.  does not prejudice New Zealand’s reputation as a responsible member of the
world community.”

s9(2)(g)(i)

s9(2)(g)(i)

From:
John Creech
To:
Cecile Portoleau; Jason Austin; Kayleigh Kell; Jeremy Smith; Harry Stanley
Cc:
Stacey O"Dowd; Rian Walden; Jivan Grewal; Andrew Craig; Izzy Jefferson; Nic Blakeley; Iain Cossar
Subject:
RE: BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration instructions guiding the determination of acceptable investments
Out of scope
Date:
Tuesday, 17 December 2024 10:17:01 AM
Attachments:
REQ-0007443 Active Investor Plus visa - Updates to immigration instructions guiding the determination of acceptable investments - ML signed.pdf
Kia ora Cecile,

Minister Lee has gotten to this ahead of the summer break -- signed paper attached.

Have a great day.

Ngā mihi
John

John Creech
Private Secretary (Economic Development) | Office of Hon Melissa Lee
Minister for Economic Development | Minister for Ethnic Communities
Associate Minister for ACC

DDI: s9(2)(a)
Email:  9(2)(a)
Website: www.Beehive.govt.nz
Private Bag 18041, Parliament Buildings, Wellington 6160, New Zealand

From: 9(2)(a)

Sent: Monday, 16 December 2024 1:20 PM
To: 9(2)(a)
Cc: s9(2)(a)
Subject: BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration instructions guiding the determination of
acceptable investments Out of scope

Kia ora,

Please see attached BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration instructions guiding the
determination of acceptable investments.

Hard copies will be in the afternoon bags.

Ngā mihi
Cécile Portoleau
EA to Jivan Grewal | General Manager Employment, Skills and Immigration Policy
EA to Andrew Craig | Policy Director Employment, Skills and Immigration Policy
PA to Stacey O’Dowd | Manager (Border and Funding) Immigration Policy
PA to Polly Vowles | Manager (Skills and Residence) Immigration Policy
PA to Sam Foley | Manager (International and Humanitarian) Immigration Policy
Employment, Skills & Immigration Policy Branch, LSE
Ministry of Business, Innovation & Employment

s9(2)(a)
| Telephone: s9(2)(a)
Level 7, 15 Stout Street, Wellington, PO Box 1473, Wellington 6140, New Zealand
NZBN 9429000106078

From:
Jeremy Smith
To:
Cecile Portoleau
Cc:
Stacey O"Dowd; Rian Walden; Jivan Grewal; Harry Stanley; Andrew Craig; Izzy Jefferson; Nic Blakeley;
John Creech; Kayleigh Kell; Iain Cossar; Jason Austin
Subject:
RE: BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration instructions guiding the
determination of acceptable investments Out of scope
Date:
Tuesday, 17 December 2024 4:36:03 PM
Attachments:
JC Signed 0007443 Active Investor Plus visa.pdf
Kia ora,
Please find attached the signed briefing on the Active Investor Plus visa from Minister
Collins.

Ngā mihi
Jeremy

From: s9(2)(a)

Sent: Monday, 16 December 2024 1:20 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration instructions
guiding the determination of acceptable investments Out of scope

Kia ora,

Please see attached BRIEFING-REQ-0007443 Active Investor Plus visa: Updates to immigration
instructions guiding the determination of acceptable investments.

Hard copies will be in the afternoon bags.

Ngā mihi
Cécile Portoleau
EA to Jivan Grewal | General Manager Employment, Skills and Immigration Policy
EA to Andrew Craig | Policy Director Employment, Skills and Immigration Policy
PA to Stacey O’Dowd | Manager (Border and Funding) Immigration Policy
PA to Polly Vowles | Manager (Skills and Residence) Immigration Policy
PA to Sam Foley | Manager (International and Humanitarian) Immigration Policy
Employment, Skills & Immigration Policy Branch, LSE
Ministry of Business, Innovation & Employment

s9(2)(a)
| Telephone: s9(2)(a)
Level 7, 15 Stout Street, Wellington, PO Box 1473, Wellington 6140, New Zealand
NZBN 9429000106078

[1] Conducted by BERL in 2017 involving consultation with banks and other financial institutions.
[2] Figures as at 30 September 2024. 'Potential investment value’ is an estimation of the funds that may be invested in New Zealand firms, given
that investors are currently able to stagger their investments over a 36-month period.
[3] Representatives from Crown entities, immigration industry professionals, wealth management firms, NZTE managed funds, investor
organisations and businesses.

Document ID: MIN-2425-4849

Minister for Economic Development
c.c. Minister for Trade

11 October 2024

NZTE ACTIVE INVESTOR PLUS POLICY REVIEW UPDATE

SUMMARY

1.  This memo provides you with a summary of proposals to amend the policy settings for the
Active Investor Plus (AIP) visa. The memo sets out the proposals being considered by Hon.
Erica Stanford, Minister of Immigration, NZTE’s perspectives and early recommendations
on the proposed changes, and the next steps and timeframes for the AIP policy review.
KEY ISSUES
2.  On 8 October 2024, NZTE was provided with an A3  (attached) summarising proposed
changes to the AIP visa, noting they signal a significant shift from the current AIP settings.
We understand you are meeting with the Minister of Immigration on 16 October 2024 to
discuss the proposed changes.  Note that, concurrently, a range of external stakeholders
are being consulted by the Ministry of Business, Innovation, and Employment (MBIE) on
the proposed changes.
3.  The proposed changes are designed to make it easier for migrants to come into New
Zealand under an investor migrant visa, enabled by introducing additional asset classes
able to be invested in to secure a visa. This includes allowing investment into Government
bonds and property developments. The proposal is for a two-pronged approach, whereby
potential investors can choose between a ‘Growth’ investment pathway, and a ‘Balanced’
pathway which allows passive, low risk investments to obtain a visa. Each pathway would
have differing price and time in country requirements.
4.  The existing AIP programme, as an economic development tool for the benefit of growing
New Zealand, is working wel , with 96 applicants in two years. These applicants represent
an investment value of $875m destined for companies through a mix of direct
investments, managed funds or listed equities. Comparatively there were 82 applicants in
the first two years of the old Investor 1 visa.
5.  With $875m to date under the AIP programme to be invested in more active investments,
the existing programme is driving productive investment into growth companies. The
proposed settings would divert that level of investment away from growth companies

NZTE Recommendations
25. NZTE believes the settings could be relaxed to encourage more AIP visa applications.
However, the key benefits – incentivising investment into areas where New Zealand is
capital constrained; and attracting migrants who will be active in our economy – should
not be lost sight of.  s9(2)(g)(i)

26. NZTE recommends that Ministers retain the current weighting system and introduce new
targeted asset classes based on “need” for New Zealand (e.g. infrastructure and ‘green’
bonds, not general government bonds where there is no market failure and minimal
economic benefits) while ensuring appropriate caps and weightings, so that funds
continue to flow into the most impactful and critical areas for long-term economic
development.
27. Changes to non-AIP related policy settings could also have a positive effect on demand for
the AIP visa, for example updating the Inland Revenue Department’s Foreign Investment
Fund (FIF) rules (which are currently seen as a barrier to many potential and existing
applicants seeking New Zealand residency) and making it easier for investor migrants to
purchase residential property in New Zealand under the Overseas Investment Act.
s9(2)(g)(i)

NEXT STEPS AND TIMEFRAMES
29. As above, we understand you are meeting with Hon. Erica Stanford at 4.15pm on
Wednesday 16 October to discuss the proposed AIP changes. In preparation, for that
meeting NZTE officials wil  discuss the proposals with you at the weekly NZTE meeting
with Hon. Todd McLay and yourself on Tuesday 15 October 2024.
30.  NZTE will continue to analyse the proposals as we prepare feedback to go to MBIE as part
of the external consultation underway. That feedback wil  be provided to MBIE by 18
October 2024 as required. Note we understand there will also be a formal Ministerial
consultation process fol owing the external consultation.

RECOMMENDATIONS

31. It is recommended that you:
•  Note that Hon. Erica Stanford, Minister of Immigration, has initiated a review of the
Active Investor Plus policy settings

•  Note that you are meeting with Minister Stanford at 4:15pm on Wednesday, 16
October 2024 to discuss the proposed changes

•  Refer a copy of this paper to Hon. Erica Stanford, Minister of Immigration, in
advance of the meeting on 16 October.

Peter Chrisp
Chief Executive

Hon Todd McClay

Hon Melissa Lee
MINISTER FOR TRADE

MINISTER FOR ECONOMIC DEVELOPMENT
Date:   /    / 2024

Date:   /    / 2024

APPENDIX – GLOBAL TRENDS IN INVESTOR MIGRATION

It is reported that the global residence and citizenship by investment ‘market’ is worth
USD20bn annual y, with the most popular schemes tending to al ow property investment as
a route to residence. The Greek visa, for example, only required an investment of
EUR250,000. These are the schemes that attract the most volume, but they do come with
significant risks.

For example, there have been concerns in some schemes with corruption/money laundering.
For example, in the case of Spain and Portugal, the investor immigration policies led to
significant disruption to housing markets, prompting closure of the programmes or significant
change to them.

NZTE understand that globally many investor migration programmes have closed or are being
significantly changed. Officials further understand the key reasons for schemes closing or
being revised, particularly in liberal democracies, are (i) corruption and money laundering, (ii)
unintended negative consequences of the policy, primarily on domestic property markets,
and (i i) poor economic outcomes. Other known examples include:
  •  This year Australia confirmed closure of it Significant and Premium Investor visas due
to “poor economic outcomes” and that there were issues with the scheme being used
to “park illicit funds” to gain Australian residence. The UK closed its investor
programme in 2022 due to concerns over illicit Russian money dominating the
scheme.
•  As above, Spain closed its scheme this year, after granting 14,576 visas since 2013.
This was done to curb property speculation due to the impact on the domestic housing
market. Portugal also recently altered its requirements and removed property as an
investment class.

•  Ireland closed its Immigrant Investor Programme (I P) in 2023, which was also popular
with Chinese investors. Closure was due, according to reports, to concerns from the
European Commission and ongoing scrutiny re: corruption. It is reported that “The IIP,
long under the microscope for its alleged links to illicit activities, faced increasing
scrutiny over the years. The move by Ireland to terminate the program reflects a
growing global trend towards re-evaluating and tightening immigration and
investment policies.”

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:51:41 PM
Attachments:
Investor Visa Draft Cabinet paper Consultation 051124.docx
image001.jpg
Out of scope

From: Kara Isaac
Sent: Friday, 8 November 2024 2:10 PM
To: s9(2)(a)
Subject: FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Apologies Nick – I neglected to include on this earlier in the week and I understand Minister Hoggard may have an interest in
this area.

From: Kara Isaac
Sent: Tuesday, 5 November 2024 8:29 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Good evening,

Paper:  Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
For the particular attention of: Prime Minister, Minister of Finance, Associate Ministers of Finance, Minister of Research,
Science and Technology, Minister for Trade, Minister for Economic Development, Associate Ministers of Immigration, ACT
Party, NZ First Party, National Leaders’ Office
Committee: ECO on 20 November
Feedback sought by: COB, Tuesday 12 November

Proposal
This paper seeks agreement to changes to the immigration settings of the Active Investor Plus (AIP) visa to attract
investment-ready migrants and facilitate increased foreign investment to New Zealand.

Summary
The Minister of Immigration proposes changes to investor visa policy settings to ensure the immigration system
supports the Government’s priority to increase foreign direct investment.  The aim is to  attract investor migrants who
either straight away or over time will become active investors in New Zealand.
Through offering a broader range of investments to cater for different appetites and more facilitative immigration
settings,  it is anticipated increased follow-on investment and more active engagement with New Zealand businesses
as investors become more familiar with the market and are supported to integrate and invest more actively.  We have
anecdotal evidence of this and research commissioned by MBIE[1] indicated that the volume of follow on investment
(investment independent from the immigration process) made by Investor 1 and 2 applicants between 2009 and 2017
was estimated at $1.7 billion. The research also regarded investor migrants as becoming “much more risk seeking”
once trusted networks were established in New Zealand.
The AIP visa has not attracted a satisfactory volume of capital in its first two years of operation (approximately $48
million has been invested so far of a potential investment value of approximately $874 million).[2]  Feedback is that the
investment options are too high risk (particularly when they are not yet familiar with New Zealand’s investment
ecosystem), that requirements could be simpler and less restrictive.  For example, the English language requirements
and time required to be spent in New Zealand represent a compliance burden.
The Minister proposes changes to attract more investors through a simplified investor model by:
introducing two simplified investment categories (‘Growth’ and ‘Balanced’) replacing the current complex
weighting system

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:49:19 PM
Attachments:
image001.jpg
out of scope

From: 9(2)(a)

Sent: Tuesday, 12 November 2024 10:20 PM
To: 9(2)(a)
Cc: s9(2)(a)
Subject: Re: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Erica had flagged to me as something that could potentially be a summit announcement.

s9(2)(g)(i)

Get Outlook for iOS
From: 9(2)(a)
Sent: Tuesday, November 12, 2024 10:01 PM
To: 9(2)(a)
Cc: s9(2)(a)
Subject: RE: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New
Zealand

Assuming this is agreed, when is it proposed to be announced?

We are trying to gee up some announcements for the Infra Summit in Feb next year (PM hosting, other senior Ministers
attending – I have mentioned this to Erica briefly)

From: s9(2)(a)

Sent: Friday, 8 November 2024 3:34 PM
To: 9(2)(a)
Subject: FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

From: 9(2)(a)

Sent: Tuesday, 5 November 2024 8:29 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Good evening,

Paper: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
For the particular attention of: Prime Minister, Minister of Finance, Associate Ministers of Finance, Minister of Research,
Science and Technology, Minister for Trade, Minister for Economic Development, Associate Ministers of Immigration, ACT
Party, NZ First Party, National Leaders’ Office
Committee: ECO on 20 November
Feedback sought by: COB, Tuesday 12 November

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:50:56 PM
Attachments:
image001.jpg
image002.jpg
Out of scope

From: Kara Isaac
Sent: Monday, 11 November 2024 12:11 PM
To: s9(2)(a)
Subject: RE: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Thanks Elinor, will pass onto MBIE

From: s9(2)(a)

Sent: Monday, 11 November 2024 11:58 AM
To: 9(2)(a)
Cc: s9(2)(a)
Subject: RE: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Hi Kara,

Our comments on this paper are as follows:
We support the intent of the proposals; however, we have some questions around how the policy will be
implemented.
The paper sets out that enabling low-risk investment will provide an opportunity for NZTE to steer investors toward
higher-risk and higher-value investments later. However, the paper notes that the evidence for this effect is limited to
anecdotal reports and a 2017 BERL research report, and it is unclear how NZTE will implement this.
It would be more useful to get further information regarding how NZTE will incentivise low-risk investors to become
high-risk investors through the AIP process.

Thanks,

Elinor

Elinor Bendell
Private Secretary - Finance
Office of Hon Nicola Willis
Minister of Finance
Level 7.2 Executive Wing, Parliament Buildings, PO Box 18041, Wellington 6160, New Zealand
M: s9(2)(a)
E: s9(2)(a)

From: 9(2)(a)

Sent: Tuesday, 5 November 2024 8:29 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Good evening,

Private Bag 18041, Parliament Buildings, Wellington 6160, New Zealand

[1] Conducted by BERL in 2017 involving consultation with banks and other financial institutions.
[2] Figures as at 30 September 2024. 'Potential investment value’ is an estimation of the funds that may be invested in New Zealand firms, given
that investors are currently able to stagger their investments over a 36-month period.
[3] Representatives from Crown entities, immigration industry professionals, wealth management firms, NZTE managed funds, investor
organisations and businesses.

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:50:43 PM
Attachments:
image001.jpg
out of scope

From: 9(2)(a)

Sent: Tuesday, 12 November 2024 1:09 PM
To: 9(2)(a)
9(2)(a)
Subject: Fw: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Get Outlook for iOS
From: s9(2)(a)
Sent: Tuesday, November 12, 2024 1:07 PM
To: 9(2)(a)
Subject: RE: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New
Zealand

Good afternoon Kara,

Thank you for sharing the draft paper on investor migrant policy settings.

Please see as below feedback with an Economic Development perspective from Hon Lee for Hon Stanford.

We agree that some policy settings could be liberalised to increase the number of investor migrants applying to the AIP visa
programme. As discussed at our recent meeting regarding the programme, we would be supportive in providing instructions
to NZTE to broaden direct investments and managed funds to allow, for example, investments in aged care facilities, tourism
infrastructure, forestry, horticulture.

9(2)(g)(i)

9(2)(g)(i)

Best regards,

--
Matthew Stephens JP
Office of Hon. Melissa Lee MP
Parliament Buildings | Wellington | Tel: s9(2)(a)
Email: s9(2)(a)

This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or
copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system.
Please note that if this correspondence is in regard to Ministerial information it may be subject to the Official Information Act.
Authorised by Hon.Melissa Lee MP, Parliament Buildings Wellington

From: 9(2)(a)

Sent: Tuesday, 5 November 2024 8:29 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Good evening,

Paper: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
For the particular attention of: Prime Minister, Minister of Finance, Associate Ministers of Finance, Minister of Research,
Science and Technology, Minister for Trade, Minister for Economic Development, Associate Ministers of Immigration, ACT
Party, NZ First Party, National Leaders’ Office
Committee: ECO on 20 November
Feedback sought by: COB, Tuesday 12 November

Proposal
This paper seeks agreement to changes to the immigration settings of the Active Investor Plus (AIP) visa to attract
investment-ready migrants and facilitate increased foreign investment to New Zealand.

Summary
The Minister of Immigration proposes changes to investor visa policy settings to ensure the immigration system
supports the Government’s priority to increase foreign direct investment. The aim is to attract investor migrants who
either straight away or over time will become active investors in New Zealand.
Through offering a broader range of investments to cater for different appetites and more facilitative immigration

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:50:25 PM
Attachments:
image001.jpg
Out of scope

From: 9(2)(a)

Sent: Tuesday, 12 November 2024 1:10 PM
To: s9(2)(a)
Subject: Fw: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Get Outlook for iOS
From: s9(2)(a)
Sent: Tuesday, November 12, 2024 10:25 AM
To: 9(2)(a)
Subject: FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New
Zealand

Hi Kara,

Good luck today.

The Minister has the following comment, which is essentially following from his letter sent to Minister Stanford a couple of
weeks ago.

The Minister is keen for the paper to provide some detail on the philanthropy pathway under the balanced category and what
would be included here. He is keen that it could outline that it would cover for funding of environmental projects that may
well be Government managed, or investing in the biodiversity credit framework (when it’s established). He accepts that not
every single project will be worthy (or need) migrant visa holder investment, but there could be some system to manage the
investment.

It would be good to get a sense of whether this sort of thing is intended for the philanthropy category. If it is, then there is at
least an opportunity to add a bit more detail.

Kind regards
Nick

From: 9(2)(a)

Sent: Friday, 8 November 2024 2:10 PM
To: s9(2)(a)
Subject: FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Apologies Nick – I neglected to include on this earlier in the week and I understand Minister Hoggard may have an interest in
this area.

From: Kara Isaac
Sent: Tuesday, 5 November 2024 8:29 PM
To: s9(2)(a)

Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Good evening,

Paper:  Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
For the particular attention of: Prime Minister, Minister of Finance, Associate Ministers of Finance, Minister of Research,
Science and Technology, Minister for Trade, Minister for Economic Development, Associate Ministers of Immigration, ACT
Party, NZ First Party, National Leaders’ Office
Committee: ECO on 20 November
Feedback sought by: COB, Tuesday 12 November

Proposal
This paper seeks agreement to changes to the immigration settings of the Active Investor Plus (AIP) visa to attract
investment-ready migrants and facilitate increased foreign investment to New Zealand.

Summary
The Minister of Immigration proposes changes to investor visa policy settings to ensure the immigration system
supports the Government’s priority to increase foreign direct investment.  The aim is to  attract investor migrants who
either straight away or over time will become active investors in New Zealand.
Through offering a broader range of investments to cater for different appetites and more facilitative immigration
settings,  it is anticipated increased follow-on investment and more active engagement with New Zealand businesses
as investors become more familiar with the market and are supported to integrate and invest more actively.  We have
anecdotal evidence of this and research commissioned by MBIE[1] indicated that the volume of follow on investment
(investment independent from the immigration process) made by Investor 1 and 2 applicants between 2009 and 2017
was estimated at $1.7 billion. The research also regarded investor migrants as becoming “much more risk seeking”
once trusted networks were established in New Zealand.
The AIP visa has not attracted a satisfactory volume of capital in its first two years of operation (approximately $48
million has been invested so far of a potential investment value of approximately $874 million).[2]  Feedback is that
the investment options are too high risk (particularly when they are not yet familiar with New Zealand’s investment
ecosystem), that requirements could be simpler and less restrictive.  For example, the English language requirements
and time required to be spent in New Zealand represent a compliance burden.
The Minister proposes changes to attract more investors through a simplified investor model by:
introducing two simplified investment categories (‘Growth’ and ‘Balanced’) replacing the current complex
weighting system
broadening the scope of acceptable investments to increase the offerings available that align with
Government’s economic strategy and attract a broader range of investor migrants
reducing immigration requirements for active investors – specifically making it quicker for people to obtain
permanent residence
reducing barriers, for example, removing the English language requirement.
Stakeholder feedback[3] indicated broad support of proposals to simplify AIP settings.  Most emphasised the
importance of Government having a joined-up approach to effectively attract and retain investor migrants by actively
connecting them to investment opportunities.  Many also pointed to settings outside the immigration system that are
irritants for investor migrants.  This includes our foreign investment fund (FIF) tax rules and current restrictions in the
Overseas Investment Act 2005 on the ability to buy residential property.
Some risks have been identified with the proposed changes to policy settings, and the Minister considers that these
can be appropriately managed.  Some stakeholders expressed concern that expanding acceptable investments to
include passive investment options (bonds and property) could result in increased investment in areas where there is
no gap in the market and reduce opportunities for investors to share their skills and experience associated with more
active investments.
These risks are mitigated by having favourable settings to incentivise active investment, including a quicker pathway to
permanent residence and a discount on time required to be spent in New Zealand where lower risk investors opt for
some active investment.  My expectation (consistent with stakeholder anecdote and independent research) is that
once investors settle into our investment ecosystem, build trusted networks and are actively supported, they will
make more beneficial investments to the economy.

Out
of
Subject:
FW: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
Date:
Thursday, 13 February 2025 3:48:34 PM
Attachments:
image001.jpg
out of scope

From: Kara Isaac
Sent: Wednesday, 13 November 2024 9:06 AM
To: s9(2)(a)
Subject: RE: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Sure thing

From: s9(2)(a)

Sent: Wednesday, 13 November 2024 8:19 AM
To: 9(2)(a)
Subject: Re: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New Zealand

Is it okay if I come and see you this morning to feedback some comments on this paper?
Thanks,
Claire

Get Outlook for iOS
From: 9(2)(a)
Sent: Tuesday, November 5, 2024 8:29 PM
To: s9(2)(a)
Cc: s9(2)(a)
Subject: Consultation: Changes to investor migrant policy settings to attract and facilitate investment to New
Zealand

Good evening,

Paper:  Changes to investor migrant policy settings to attract and facilitate investment to New Zealand
For the particular attention of: Prime Minister, Minister of Finance, Associate Ministers of Finance, Minister of Research,
Science and Technology, Minister for Trade, Minister for Economic Development, Associate Ministers of Immigration, ACT
Party, NZ First Party, National Leaders’ Office
Committee: ECO on 20 November
Feedback sought by: COB, Tuesday 12 November

Proposal
This paper seeks agreement to changes to the immigration settings of the Active Investor Plus (AIP) visa to attract
investment-ready migrants and facilitate increased foreign investment to New Zealand.

Summary
The Minister of Immigration proposes changes to investor visa policy settings to ensure the immigration system
supports the Government’s priority to increase foreign direct investment.  The aim is to  attract investor migrants who
either straight away or over time will become active investors in New Zealand.
Through offering a broader range of investments to cater for different appetites and more facilitative immigration
settings,  it is anticipated increased follow-on investment and more active engagement with New Zealand businesses

as investors become more familiar with the market and are supported to integrate and invest more actively. We have
anecdotal evidence of this and research commissioned by MBli:Ul indicated that the volume of follow on investment
(investment independent from the immigration process) made by Investor 1 and 2 applicants between 2009 and 2017
was estimated at $1.7 billion. The research also regarded investor migrants as becoming "much more risk seeking"
once trusted networks were established in New Zealand.
• The AIPvisa has not attracted a satisfactory volume of capital in its first two years of operation (approximately $48
million has been invested so far of a potential investment value of approximately $87 4 million).!21 Feedback is that the
investment options are too high risk (particularly when they are not yet familiar with New Zealand's investment
ecosystem), that requirements could be simpler and less restrictive.  For example, the English language requirements
and time required to be spent in New Zealand represent a compliance burden.
• The Minister proposes changes to attract more investors through a simplified investor model by:
o introducing two simplified investment categories ('Growth' and 'Balanced') replacing the current complex
weighting system
o broadening the scope of acceptable investments to increase the offerings available that align with
Government's economic strategy and attract a broader range of investor migrants
o reducing immigration requirements for active investors - specifically making it quicker for people to obtain
permanent residence
o reducing barriers, for example, removing the English language requirement.
• Stakeholder feedbackl3! indicated broad support of proposals to simplify AIP settings.  Most emphasised the
importance of Government having a joined-up approach to effectively attract and retain investor migrants by actively
connecting them to investment opportunities.  Many also pointed to settings outside the immigration system that are
irritants for investor migrants.  This includes our foreign investment fund (FIF) tax rules and current restrictions in the
Overseas Investment Act 2005 on the ability to buy residential property.
• Some risks have been identified with the proposed changes to policy settings, and the Minister considers that these
can be appropriately managed.  Some stakeholders expressed concern that expanding acceptable investments to
include passive investment options (bonds and property) could result in increased investment in areas where there is
no gap in the market and reduce opportunities for investors to share their skills and experience associated with more
active investments.
• These risks are mitigated by having favourable settings to incentivise active investment, including a quicker pathway to
permanent residence and a discount on time required to be spent in New Zealand where lower risk investors opt for
some active investment. My expectation (consistent with stakeholder anecdote and independent research) is that
once investors settle into our investment ecosystem, build trusted networks and are actively supported, they will
make more beneficial investments to the economy.
Best regards,
Kara
i  7 Kara Isaac
Office of Hon Erica Stanford
Minister of Education
Minister of Immigration
[g
L
M
.
_J E  .
Website: www.Beehive.govt.nz
Privat  �
s. Wellington 6160, New Zealand
UJ Conducted by BERL in 2017 involving consultation with banks and other financial institutions.
@Figures as at 30 September 2024. 'Potential investment value' is an estimation of the funds that may be invested in New Zealand firms, given
that investors are currently able to stagger their investments over a 36-month period.
Ql Representatives from Crown entities, immigration industry professionals, wealth management firms, NZTE managed funds, investor
organisations and businesses.

9(2)(g)(i)