BK4.45 Definition of 'acceptable investment' (26/11/2007)

1. An acceptable investment means an investment that:
   1. is capable of a commercial return under normal circumstances; and
   2. is not for the personal use of the applicant(s) (see BK4.45.1 below); and
   3. is invested in New Zealand in New Zealand currency; and
   4. is invested in lawful business enterprises or managed funds that comply with all relevant laws in force in New Zealand; and
   5. is a semi-active (see BK4.45.15 below) or an active investment (see BK4.45.10 below); and
   6. is not (directly or indirectly) invested in residential property development (see BK4.45.25 below); and
   7. has the potential to contribute to New Zealand's economic transformation goals of innovative, productive, and globally competitive firms.
2. Notwithstanding (a) above, where an investment fails to meet one of the acceptable investment requirements, a business immigration specialist may consider, on a case by case basis, whether the failure was beyond the control of the principal applicant and if satisfied that this was the case, may consider the investment acceptable.

BK4.45.1 Personal use of investment funds

Personal use includes investment in assets such as a personal residence, car, boat or similar.

BK4.45.5 Active investment

1. A principal applicant qualifies for bonus points if they undertake active investment as part of their overall investment in New Zealand.
2. The minimum amount of active investment required to qualify for bonus points is NZ$500,000.
3. The amount claimed for active investment can be placed in a number of investments subject to meeting the active investment requirements as set out under BK4.45.10 below.
4. Points for nominated active investment funds are as follows:

BK4.45.10 Definition of 'active investment'

1. An active investment is:
   1. a direct investment of NZ$100,000 or more, in the establishment of a new lawful enterprise which undertakes significant economic activity in New Zealand, and results in the principal applicant acquiring 10 percent or more shareholding; or
   2. a direct investment of NZ$200,000 or more, in an existing lawful enterprise which undertakes significant economic activity in New Zealand, and results in the principal applicant acquiring 10 percent or more shareholding.

BK4.45.15 Definition of 'semi-active investment'

A semi-active investment is a direct or indirect investment (including managed funds) in the equity of an existing lawful enterprise(s) which undertakes significant economic activity in New Zealand and does not qualify as an active investment.

BK4.45.20 Managed funds

1. For the purposes of this policy managed funds are defined as either:
   1. a managed fund investment product offered by a financial institution; or
   2. funds invested in equities that are managed on an investor's behalf by a fund manager or broker.
2. In order to be acceptable as a form of semi-active investment a managed investment scheme must be a 100 percent New Zealand equity based fund (ie a fund that invests only in New Zealand companies).

BK4.45.25 Residential property development

For the purposes of this policy, residential property development includes:

1. building, or arranging to build, a household unit for the purpose of selling it; or
2. acquiring a household unit from a person who built it or arranged for it to be built for the purpose of selling it; or
3. acquiring and subdividing land for the purposes of residential property development; or
4. acquiring and/or selling an existing household unit.

Effective 26/11/2007