Minister for Commerce and Consumer Affairs Hon. Cameron Brewer announced today that the Government is seeking feedback on its next phase of capital market reforms, which are aimed “to lower the cost of raising money for Kiwi businesses and deliver stronger returns for everyday investors”. The consultation runs for six weeks, closing on 25 August 2026.

The Minister addressed an audience of market leaders at NZX’s Auckland office at midday today and released his press release and the Ministry of Business, Innovation & Employment’s discussion document, available here and here. 

Who needs to read it? Why?

Businesses, fund managers, investors, financial advisers and anyone with a stake in New Zealand's capital markets. Phase Two seeks both big-picture ideas on modernising regulation, including keeping pace with digitalisation and AI, and feedback on eight specific reform areas.

What does it cover?

The Phase Two discussion document seeks feedback on how to modernise the rules governing our capital markets, with eight targeted proposals aimed at lowering the cost of capital and removing barriers to raising it, while maintaining investor protections. The eight areas for potential regulatory change include:

• product disclosure statements;
• director and issuer liability; 
• catalist market settings;
• unlisted securities exchange audit requirements;
• crowdfunding and peer-to-peer lending limits; 
• wholesale investor settings;
• auditor liability; and 
• broker activity and visibility of offers.

Our view

The earlier Phase One of the Government's capital market reforms delivered the following:

• prospective financial information at IPO is now optional (effective June 2025); and 
• the number of businesses required to do climate-related reporting is proposed to be reduced, with related director liabilities eased (this Bill is still before Parliament).

Building on Phase One, the Government's Phase Two consultation covers a broad range of issues that will be of interest to anyone active in New Zealand's capital markets. We encourage businesses, fund managers, financial advisers and market participants to review the discussion document and engage with the process. This is an opportunity to shape how New Zealand's capital markets are regulated, and we encourage you to have your say before the 25 August 2026 deadline.

What next?

If you have questions or would like our help preparing a submission, please contact one of our experts.

This article was co-authored by Darlene Hu a Solicitor in our Financial Services team.