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concern on applicant's identity.
2.0Investment Funds(refer BJ3.10)
The PA has nominated investment funds of NZD$ 10 million
2.1Investment funds nominated in the application
Short term finance productZhongtai SecuritiesCNY 10,400,000
SecuritiesZhongtai Securities CNY 27,650,759
Wealth Management ProductChina Merchants BankCNY 20,000,000
Total claimed NZD equivalent = $12,680,600 as at 20/03/2018 (Source: Oanda.com)
2.2Evidence provided for investment funds
[Tag INV]
Original statement from Zhongtai Securities Company Limited dated 22/02/2018,
showing shares owned in fund account s 9(2)(a)
with a market value of CNY
10,400,000
Original stock statement from Zhongtai Securities Company Limited dated 22/02/2018
showing Centralized Securities Assets worth CNY 27,627,644
China Merchants Bank account transaction statement dated 20/02/2018 showing a
deposit and withdrawal of CNY 20,000,000
On 10/04/2018 the adviser notified that the PA wished to only nominate the short-term
financial product and the securities.
On 07/05/2018 the following originals were received:
[Tag INV2]
Original statement from Zhongtai Securities Company Limited dated 27/03/2018,
showing shares owned in fund account s 9(2)(a)
(Product codes SF2883 and
SF2885) with a market value of CNY 34,500,000
Original stock statement from Zhongtai Securities Company Limited dated 27/03/2018
showing Centralized Securities Assets worth CNY 27,783,013 and Cash Assets of CNY
57 in fund accounts 9(2)(a)
The following table shows a detailed summary of the above investment funds nominated
in the PA's application:
Funds/Asset Details As at dateAmount local currency (CNY) Amount NZD as at
17/04/2018 Source: Oanda.com
Short term finance productZhongtai Securities Company Limited
Account: s 9(2)(a)
27/03/201830,800,000 (SF2883)$6,670,650
3,700,000 (SF2885)$801,344
SecuritiesZhongtai Securities Company Limited
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It is explained that given the companies that the PA worked for were state owned, and
given formal records must be scrupulously maintained in the logistics industry, it can be
inferred that the PA paid the proper tax on his earnings and that his earnings were lawful
during this time.
Similarly, according to China's regulations, tax is automatically deducted when securities
are sold. Therefore, it is submitted that the income gained form the securities market is
lawfully earned income.
The applicant has provided comprehensive evidence to demonstrate that he acquired the
funds legally through salary, company profit, and the sale of securities.
3.4Conclusion
I am satisfied that the PA has lawfully earned and acquired the nominated investment
funds and/or assets (BJ5.40.1 & BJ5.40.5, BJ5.40.20).
4.0Fit and proper person requirements (refer BM)
It is a requirement under the instructions for principal applicants to be a "fit and proper"
person under any business category applications.
From the business documents provided, there is no indication that the PA has been
involved in an incident of non-compliance with any relevant immigration, employment or
taxation law in force in the country where the business operates. Also, the PA does not
appear to be under investigation by Serious Fraud or police for offences arising or
resulting from any business dealings. There is no conviction record for the PA as per
police certificates from China supplied, particularly for offences involving dishonesty.
There is no indication that PA has been involved in business fraud or financial
impropriety.
I am satisfied that the PA meets the fit and proper person requirement in line with BM
instructions
5.0Health and Character(refer BJ3.5)
[Tag MED]
s 9(2)(a)
The e-medical certificates submitted are from an earlier visa application. The meds are
acceptable given they are ASH and are still within the 36-month timeframe as per A4.5
instructions
I am satisfied that all applications have an acceptable standard of health (ASH) for the
purpose of temporary entry and residence.
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Date/Time Created: 24/Aug/2018 10:25 am
Officer: Pitt, Tony
Branch: Wellington Business Unit
Type: Application Notes
Appln #: s 9(2)(a)
Application Type: Visa, Resident, Investor 1 Category
_________________________
Assessment of Transfer and Investment of Funds to New Zealand for s 9(2)(a)
Investor 1 application s 9(2)(a)
1.0Background
This Investor 1 application was approved in principle on 10/05/2018. (Tag AIP)
The applicant's accepted nominated investment funds were as follows:
AssetAccount number or addressValue
Short term finance productZhongtai Securities Company Limited
Account: s 9(2)(a)
RMB 30,800,000
RMB 3,700,000
SecuritiesZhongtai Securities Company Limited
Account: s 9(2)(a)
RMB 27,783,070
The applicant is required to transfer the sum of NZD10.0 million to New Zealand and
place those funds into acceptable investments.
2.0Relevant policy
BJ7.10 Transfer of the nominated investment funds
a.When their application is approved in principle, the principal applicant will be required
to transfer the nominated investment funds to New Zealand. These funds must:
i.be the funds initially nominated, or the funds that result from the sale of the same assets
as those initially nominated, in the resident visa application; or
ii.be transferred through the banking system directly from the principal applicant's bank
account(s) to New Zealand; or
b.The investment funds that are transferred to New Zealand and subsequently into an
acceptable investment must be from the same source of funds as nominated in the resident
visa application.
BJ7.20 Timeframe for investing funds in New Zealand
a.Principal applicants must meet the requirements for transferring and investing the
nominated funds within 12 months of the date of the letter advising of approval in
principle.
BJ7.20.1 Extending the timeframe for investing funds in New Zealand
a.Principal applicants may request an extension to their transfer and investment period for
up to a further 12 months for Investor 1 applicants, or six months for Investor 2
applicants.
3.0Transfer of funds to New Zealand
Letters from the adviser received on 17/08/2018 provided details relating to the transfer of
the nominated investment funds with the supporting documents. (Tag P1).
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FNZC portfolio statements for PA which shows that on 16/07/2018 the applicant used
their nominated funds to complete the purchase of the below NZ bonds and NZ equities
with a final clean cost of NZD10,097,345.00.
I note these portfolio statements uniquely identify the applicant by reference to the ISIN
number contained in page 2 of the above QDII scheme subscription confirmation advice.
NZ bonds
IssuerMaturityQuantityClean Cost
Chorus Limited06/05/20211,000,0001,025,985
ANZ Bank02/09/20212,300,0002,353,206
Fonterra Co-op20/10/20212,000,0002,097,256
Total5,476,447
NZ equities
IssuerQuantityClean Cost
ASB Bank2,400,0002,525,458
Genesis Energy Limited1,000,0001,036,717
Spark Finance Limited1,000,0001,058,723
Total4,620,898
Flowchart of funds movements
Total clean cost is NZD10,097,345 and the purchases were completed on 16/07/2018.
6.0Comment on transfer and investment
The documents the applicant has provided clearly demonstrate that the applicant has
transferred their nominated funds through the banking system to New Zealand and has
used their transferred funds to purchase a NZD10.0 million portfolio of investments
consisting of NZDX traded bonds and equities.
The bonds and equities have been purchased through FNZC and they meet the policy
definition of an acceptable investment.
7.0Summary
In the case of this transfer and investment I am satisfied, based on the documents
provided, that it meets the Investor 1 policy requirements. The method used is transparent
and credible. The process is properly documented. The applicant has provided
independent documentary evidence showing each step of the transfer process.
The applicant has had ownership and control of the funds at all times. The investment
funds have been used to purchase qualifying bonds and these investments meet all of the
criteria in policy at BJ3.10 relating to acceptable investments.
The applicant has transferred their funds to New Zealand and on 16/07/2018 completed
the placement of those funds into acceptable investments. The deadline for the transfer
and investment is on 10/05/2019. The funds transfer and investment were made within the
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deadline.
Based on the credibility of the documents provided and the funds transfer and investment
process used, I am satisfied that there are no risk factors with this funds transfer and
therefore resident visas may now be issued as soon as the applicant has paid the
applicable migrant levy and any English language tuition fees that may be applicable.
Decision taken: APPROVE
Signed:Signed:
Tony PittName 2PC:
Business Immigration Specialist
Date:
Date:
_________________________
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Date/Time Created: 18/Aug/2020 08:03 am
Officer: Han, Frederic
Branch: Wellington Business Unit
Type: Application Notes
Appln #: s 9(2)(a)
Application Type: Visa, Resident, Investor 1 Category
_________________________
Section 49(1) two year check completed. No outstanding issues. Copy of assessment as
follows:
=======>
MIGRANT INVESTOR POLICY
INVESTOR 1 CATEGORY
TWO-YEAR ANNIVERSARY 49(1) ASSESSMENT
s 9(2)(a)
APPLICATION NUMBER:s 9(2)(a)
49(1) COMMENCEMENT DATE:16/07/2018
INVESTMENT VALUE:NZD $10 million
1.0:Background and relevant policy
This application was approved and resident visas issued on 24/08/2018.
The applicant was in New Zealand when the resident visas were issued.
The resident visa issued to the applicant was issued subject to requirements imposed
under section 49(1) Immigration Act 2009.
Policy relevant to this is as follows:
BJ8.10 Resident visas subject to conditions under section 49(1) of the Immigration Act
See also Immigration Act 2009 s 49
All resident visas granted under one of the Migrant Investment Categories are subject to
the following conditions under section 49(1) of the Immigration Act 2009:
a.that the principal applicant retains an acceptable investment in New Zealand for a
minimum of three years under the Investor 1 Category or four years under the Investor 2
Category; and
b.that the principal applicant spends a minimum period of time in New Zealand during the
required investment period (see BJ8.15); and
c.that the principal applicant informs the nearest office of INZ of any changes of New
Zealand address during the investment period; and
d.that a principal applicant who was awarded 1 point for English language ability (see
BJ5.35) under the Investor 2 Category, must complete a minimum 20 hours of English
language tuition with a New Zealand registered school or tertiary education provider as
defined in the Education Act 1989 within the four year investment period; and
e.within three months of the two-year anniversary of the investment period, the principal
applicant submits evidence that they are retaining an acceptable investment in
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New Zealand; and
f.within 3 months after the expiry date of the investment period, the principal applicant
submit evidence to INZ that they have met requirements (a) and (d) if applicable.
g.that the principal applicant must provide evidence that `growth investments' have been
retained for the investment period
BJ8.15 Section 49(1) condition: minimum period of time in New Zealand
As set out at BJ8.10.a.i the principal applicant under each category of the Migrant
Investment categories must spend a minimum period of time in New Zealand during the
required investment period. The time periods are:
a.Investor 1 Category - 12% of each year (44 days per year)
b.Investor 2 Category - 40% of each year (146 days per year)
2.0:Initial investments made by applicant
The applicant had completed making the investments on 24/08/2018. See @Tag A for
approval letter. The details of those investments are as set out below:
FNZC Structured Investment Limited Series s 9(2)(a)
Total clean cost is NZD10,097,345.
Fixed interest:
ISSUERMATURITYQUANTITY
Chorus Limited6/05/20211,000,000
ANZ Bank2/09/20212,300,000
Fonterra Co-op20/10/20212,000,000
Listed equities:
ISSUERQUANTITY
ASB Bank2,400,000
Genesis Energy Limited1,000,000
Spark Finance Limited1,000,000
Comment:
It appears that there is a data entry mistake on the TOFI assessment for the Equities. I
have requested the original file and checked (at PRE Tag-I1 and indeed the following are
bonds (not equities) :
ISSUERMATURITYQUANTITY
ASB Bank24/02/20222,400,000
Genesis Energy Limited18/03/20221,000,000
Spark Finance Limited25/05/20221,000,000
3.0:Have the investments been maintained?
Documents @Tag B have been received from s 9(2) detailing the applicant's currently
held investments (as at 20/07/2020). This shows t
(a) he applicant holding the following
investments:
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Fixed interest:
ISSUERMATURITYQUANTITYCOMMENT
Chorus Limited6/05/20211,000,000No change
ANZ Bank2/09/20212,300,000No change
Fonterra Co-op20/10/20212,000,000No change
ASB Bank24/02/20222,400,000No change
Genesis Energy Limited18/03/20221,000,000No change
Spark Finance Limited25/05/20221,000,000No change
3.1Comment
Next to each of the current investments as listed above is a comment concerning whether
the investment has been retained unchanged, has increased, decreased, or is a new
investment.
The above list clearly shows that the applicant has made no changes to the investments
during the first two years of the investment period.
3.2Conclusion
I am therefore satisfied that the applicant has maintained the acceptable investments in
New Zealand during the first two years of the three year investment period.
The applicant holds the following investments as at the two year investment anniversary:
Fixed interest:
ISSUERMATURITYQUANTITY
Chorus Limited6/05/20211,000,000
ANZ Bank2/09/20212,300,000
Fonterra Co-op20/10/20212,000,000
ASB Bank24/02/20222,400,000
Genesis Energy Limited18/03/20221,000,000
Spark Finance Limited25/05/20221,000,000
4.0:Has the applicant met the minimum time in New Zealand requirements?
Policy BJ8.15(b) requires the applicant to have spent a total of 44 days in New Zealand
between 16/07/2019 and 15/07/2020.
AMS records show that the applicant has spent a total of 352 days in New Zealand over
this period and has therefore met the time in New Zealand requirements as amended.
5.0:Were the assessment documents provided by the section 49(1) deadline?
In this case the second anniversary of the commencement of the investment occurred on
16/07/2020 and therefore the two year check documents were required to be provided to
INZ no later than 16/10/2020.
In this case the two year check documents were received by INZ on 30/07/2020 and
therefore were received within the required timeframe.
6.0:Conclusion
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The applicant has provided acceptable evidence of maintaining the investments in New
Zealand in compliance with Investor 1 Instructions at BJ8.10. The applicant has also
complied with the minimum time required in New Zealand under the Investor 1 Category.
The applicant will now be advised by letter that he has met the section 49(1) requirements
at the two-year anniversary and with effect from 24/08/2020 (two years from the date the
applicant was first in New Zealand as a resident) a further resident visa with travel
conditions for two years will be issued to him on application.
Signed:Signed:
Frederic HANName 2PC:
Business Immigration Specialist
Date: 18/08/2020Date
_________________________
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