F3.25 Approval in principle and transfer of funds

F3.25.1 Aim and intent

The instructions regarding the nominated investment funds and/or assets and the method of transfer of those funds to New Zealand is designed to ensure:

1. the legitimacy and lawful ownership of the nominated funds and/or assets; and
2. the direct transfer of the investment funds through a structured and prescribed process to guarantee on-going legitimacy and lawful ownership of the funds invested in New Zealand.

F3.25.5 Approval in principle

Principal applicants who are assessed as meeting the requirements under the Parent Retirement Category will be advised that:

1. their application has been approved in principle; and
2. resident visas may be granted once they:
   1. provide acceptable evidence of having transferred and invested the nominated funds in accordance with the relevant requirements set out in instructions; and
   2. provide a New Zealand address at which they can be contacted by mail, after they arrive in New Zealand; and
3. resident visas will be granted subject to conditions under section 49(1) of the Immigration Act 2009.

F3.25.10 Transfer of the nominated investment funds

1. 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:
   1. 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
   2. be funds, as agreed to by a business immigration specialist, secured against the nominated assets in the resident visa application and as approved in accordance with (b) below; and
   3. be transferred through the banking system directly from the principal applicant's bank account(s) to New Zealand; or
   4. be transferred by a foreign exchange company to New Zealand through the banking system. Business immigration specialists may not accept the transferred funds if the applicant cannot provide satisfactory evidence of the following:
      • the nominated investment funds have been transferred to the foreign exchange company directly from the principal applicant’s bank account(s): and
      • the nominated investment funds have not been transferred through the foreign exchange company contrary to the criminal law of New Zealand; and
      • nominated investment funds transferred are traceable; and
      • cash transactions were not made; and
      • the foreign exchange company is not suspected of, or proven to have committed fraudulent activity or financial impropriety in any country it operates from or in.
2. A business immigration specialist may consider, on a case by case basis, borrowed funds as acceptable investment funds where the principal applicant is able to demonstrate that:
   1. they own net assets equal or greater in value to the required investment amount; and
   2. the borrowed investment funds will be from a bank or commercial lending institution acceptable to a business immigration specialist and will be secured against the assets identified under (i); and
   3. it is not economically viable or practical to liquidate the nominated assets eg sell a business.
3. 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.

Note: Nominated funds held in a country other than the country in which they were earned or acquired legally must have been originally transferred through the banking system, or a foreign exchange company that uses the banking system from that country.

F3.25.15 Evidence of the transfer of the nominated funds to New Zealand

1. Acceptable evidence of the transfer of the nominated funds must be provided by way of the telegraphic transfer documentation together with a current bank statement showing the transfer(s).
2. A business immigration specialist may request any other information to satisfy them that the above requirements have been met.

F3.25.20 Time frame for investing funds in New Zealand

1. 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.
2. Applications for residence must be declined if principal applicants do not present acceptable evidence of having transferred and invested the nominated funds within 12 months from the date of approval in principle.
3. Principal applicants must provide acceptable evidence of having transferred and invested the nominated funds no later than three months after the expiry of the approved timeframe to transfer and invest the funds (i.e. three months after the 12-month timeframe from the date of approval in principle).

F3.25.25 When the investment period begins

1. If the investment already meets the investment requirements, the required investment period begins on the date of the letter advising approval in principle.
2. If the investment is made after approval in principle, the required investment period will begin on the date the investment requirements are met.
3. The date the investment period begins is specified in the letter to the successful principal applicant that advises of the conditions on their resident visa (see F3.30.10).

F3.25.30 Evidence of the principal applicant's investment

1. Principal applicants must submit the following information and documentation as evidence of having invested funds:
   1. the full name of the investor; and
   2. the amount invested in New Zealand dollars; and
   3. the date the investment was made; and
   4. the type of investment (in the case of shares or bonds in companies, the names of the companies invested in and the number of shares or bonds purchased must be listed); and
   5. documentary evidence of the investment; and
   6. a letter from a reliable independent professional (for example, a solicitor or chartered accountant), confirming that the funds have been invested.
2. A business immigration specialist, at their discretion, may require any other form of evidence.

F3.25.35 Temporary visa to arrange transfer and/or investment of funds

1. After approval in principle, and upon application, a work visa may be granted to allow the principal applicant to arrange the transfer to, and investment of funds in, New Zealand.
2. The work visa will be valid for multiple entries to New Zealand for 12 months after Approval in Principle has been given.
3. A work visa may be granted for the same period on application to the principal applicant's partner (see WS2.1.1(d)).

Effective 13/05/2019