BB4.1 General rules for investment funds (20/11/2002)

1. Principal applicants must score a minimum of one point for Investment Funds (up to a maximum of 11 points).
2. Before a residence visa will be issued or a residence permit granted, a principal applicant who obtains a points pass must transfer the nominated investment funds, to New Zealand through the trading bank system. (If funds are already held in New Zealand see BB4.10.)
3. Investment funds the same as, or greater than, the amount of funds and assets nominated at the time of approval in principle must remain in an acceptable investment (see BB4.1.1 below) in New Zealand for a two-year investment period.
4. A principal applicant may not use investment funds in New Zealand for their own personal use (see BB4.1.5 below). However, the principal applicant may use the interest earned from the investment for any purpose.
5. A principal applicant may not use investment funds in New Zealand as collateral for any loan during the 2 year investment period, unless the money loaned remains within New Zealand and in New Zealand dollars only.
6. A principal applicant may transfer investment funds to more than one investment in New Zealand to make up the amount required for points. Each individual investment must meet the requirements for investment funds.
7. The principal applicant may claim the full value of funds that they earned or acquired legally (see BB4.1.10 below) including funds which have been gifted to them unconditionally and in accordance with local law. Where nominated funds have been gifted to the principal applicant, the business immigration specialist must be satisfied that the origin of the gifted funds is lawful.
8. Funds and assets nominated at the time of approval in principle must not be borrowed.

BB4.1.1 Definition of acceptable investment

An acceptable investment is an investment which:

1. is invested in New Zealand in New Zealand currency; and
2. under normal circumstances, is capable of providing a commercial return; and
3. is not for the personal use of the principal applicant (see BB4.1.5).

   Note: Investments in New Zealand with international exposure are acceptable only for the proportion of the investment that is retained in New Zealand.
   
   Example: An investment in a unit trust with sole international exposure would completely fail to meet the above requirement that an investment be "invested in New Zealand".

BB4.1.5 Definition of personal use

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

BB4.1.10 Definition of funds earned or acquired legally

1. Funds earned or acquired legally are funds earned or acquired in accordance with the laws of the country in which they were earned or acquired.
2. Business immigration specialists have discretion to decline an application if they are satisfied that, had the funds been earned or acquired in the same manner in New Zealand, they would have been earned or acquired contrary to the criminal law of New Zealand.

Effective 20/11/2002