Thursday, 4 March 2010

What is the Parent Retirement Category?

The objective of the Parent Retirement Category is to provide residence to those with family links to New Zealand who wish to make a significant contribution to New Zealand's economy.  

Who can apply for residence under the Parent Retirement Category?

To be approved under the Parent Retirement Category you must:

• have an adult child who lives in New Zealand and who is either a New Zealand citizen or resident
• have the balance of your family in New Zealand (meets the ‘centre of gravity’ policy that sits under the Family Parent Category) 
• invest NZ$1 million in New Zealand for four years into an acceptable investment
• demonstrate ownership of NZ$0.5 million of settlement funds and an annual income of NZ$60,000 at the time of application, and
• meet standard health and character requirements.

How many places are available under the Parent Retirement Category?

There is an annual allocation of 3,440 to 3,740 places (people) for the Family Parent Category and the Parent Retirement Category.  Parent Retirement Category applications will be prioritised, in recognition of the benefit to the economy they are expected to bring.

If I have an application lodged under the Family Parent Category and want to lodge an application under the Parent Retirement Category (PRC), should I withdraw my Family Parent application?

This is your decision. There are two options:

1. Leave your Family Parent application lodged:
   You can lodge an application under the PRC while your Family Parent application is also being considered (or waiting to be allocated).  Once a decision is made on one of the applications you can consider withdrawing the other.
2. Withdraw your Family Parent application:
   You can lodge an application under the PRC and withdraw your Family Parent application. This will mean that you lose your place in the managed queue of Family Parent applications.

To lodge a PRC application you must meet the standard residence lodgement requirements. 

If I have already provided medical and police certificates with my Family Parent application, can I use these for my PRC application?

You can use your existing medical certificate(s) if they are no older than three months when you lodge your PRC application . You can use your existing police certificate(s) if they are no older than six months when you lodge your PRC application.

 

If your certificates are older than the timeframes above you will need to provide new certificates.

Investment funds

What are the requirements for investment funds?

You must demonstrate ownership of your nominated funds and/or assets, and demonstrate that the nominated funds and/or assets have been legally earned or acquired. All invested funds must be placed in an acceptable investment(s).

Can I nominate funds that have been gifted to me?

You may nominate funds and/or assets which have been given to you unconditionally and in accordance with local law. You will need to show that your donor acquired those funds and/or assets lawfully.

 

If some of your funds and/or assets have been acquired by inheritance you will need to provide appropriate evidence, eg probate or evidence from your solicitor, to show that they were acquired lawfully.

What is an acceptable investment?

An acceptable investment means an investment that:

• is capable of a commercial return under normal circumstances, and
• is not for the personal use of the applicant(s) (see What is meant by personal use of investment funds? below), and
• is invested in New Zealand in New Zealand currency, and
• is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand (see Managed funds below), and
• has the potential to contribute to New Zealand's economy, and
• is invested in either one or more of the following:
  • bonds issued by the New Zealand government or local authorities, or
  • bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX), or
  • bonds issued by New Zealand firms with at least a BBB- or equivalent rating from internationally recognised credit rating agencies (for example, Standard and Poor's), or
  • equity in New Zealand firms (public or private including managed funds), or
  • bonds issued by New Zealand registerd banks, or
  • equities in New Zealand registered banks, or
  • residential property development(s) (see Residential property development below), or
  • bonds in finance companies.
    Note:
    • For the purposes of these instructions, convertible notes are considered to be an equity investment.
    • New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.

Where an investment fails to meet one of the acceptable investment requirements, we 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.

 

We may consider bonds in finance companies as an acceptable investment where the finance company:

• is a wholly-owned subsidiary of,
• raises capital solely for, and
• has all its debt securities unconditionally guaranteed by,

a New Zealand Stock Exchange listed company or a local authority.

 

Note: The value of an investment is based on the net purchase price (for example, less any accrued interest, commission, brokerage and/or trade levy), not on the face value of the investment.

What is meant by personal use of investment funds?

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

Managed funds

For the purposes of this category, managed funds are defined as either:

• a managed fund investment product offered by a financial institution, or
• funds invested in equities that are managed on an investor's behalf by the fund manager or broker.

In order to be acceptable as a form of investment managed funds must be invested only in New Zealand companies. Managed fund investments in New Zealand with international exposure are acceptable only for the proportion of the investment that is invested in New Zealand companies.

 

Example: Only 50 per cent of a managed fund that equally invests in New Zealand and international equities would be deemed to be an acceptable investment.

Residential property development

For the purposes of these instructions, residential property development(s) is defined as property(ies) in which people reside and is subject to the following conditions:

• the residential property must be in the form of new developments on either new or existing sites, and
• the residential property(ies) cannot include renovation or extension to existing developments, and
• the new developments must have been approved and gained any required consents by the relevant regulatory authorities (including local authorities), and
• the purpose of the residential property investments must be to make a commercial return on the open market, and
• neither the family, relatives, nor anyone associated with the principal investor, may reside in the development, and
• the costs associated with obtaining any regulatory approval (including any resource or building consents) are not part of the principal applicant's acceptable investments.

Deposit-taking financial institutions

For the purposes of these instructions, a deposit-taking financial institution is an institution that carries on the business of borrowing and lending money, or providing financial services, or both.

Do bonus bonds qualify as an acceptable investment?

No, they don’t as they do not provide a commercial return.

What is meant by personal use of investment funds?

Personal use includes a personal residence, car, boat or similar assets.

If my application for residence is approved in principle within what time frame do I have to invest my funds in New Zealand?

You should transfer your total investment funds to New Zealand and invest them in acceptable investments within 12 months of approval in principle.

 

If you do not transfer your funds within 12 months your application must then be declined.

Can I come to New Zealand to investigate investment opportunities once my application has been approved in principle?

Once your application is approved in principle you are eligible for a 12 month multiple entry work visa to come to New Zealand to investigate investment opportunities.

 

If applicable, your partner and children are eligible for multiple entry visitor’s visas for the same period.  If your children wish to study during this period they will have to apply for a student visa and meet student policy.  

Do I have to transfer my settlement funds to New Zealand?

No, you are only required to transfer your nominated investment funds to New Zealand.

How do I apply?

Application forms and guides can be downloaded or can be obtained from Immigration New Zealand branches. You can apply by completing the Parent Retirement Category Residence application form and sending it, along with the application fee and supporting evidence, to the Business Migration Branch.

 

Business Migration Branch
Immigration New Zealand
PO Box 3705
Wellington
New Zealand