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Review of the practices of the Business Migration Branch of the New Zealand Immigration Service during 2002
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THE INVESTOR POLICY: A SUMMARY
The original Investor policy came into effect on the same date as the LTBV policy: 26 July 1999. The policy remained in force until 13 June 2005, but was modified on a number of occasions, including from 20 November 2002 (discussed below).
Under the Investor policy, principal applicants were assessed according to a points system. There were three main criteria: age (principal applicants aged 85 years or older could not be approved), business experience and investment funds. If a principal applicant achieved a certain number of points, he or she was eligible for residence.
Unlike the pre-20 November 2002 LTBV policy, a principal applicant under the Investor policy had to meet a minimum standard of English, as did his or her partner, and any dependent children aged 16 years or over.
As well as having to provide evidence of age (such as a passport or an identity document), a principal applicant also had to provide evidence of business experience (which could include, for example, proof of ownership of a business, company accounts or tax returns, and a description of the applicant's responsibilities in the business).
The case officer assessing the application could require any other information about the applicant's business experience considered necessary to make a decision on the application, and had to be satisfied that the documents provided as evidence of business experience were genuine and accurate.
Also, to demonstrate that the principal applicant met the investment funds criteria, the applicant had to provide evidence of net funds and assets equivalent to his or her proposed investment funds, and evidence that those funds and assets were earned or acquired lawfully. The business immigration specialist could request further information if he or she considered that any of the evidence provided was unreliable, or doubted that the funds were earned or acquired legally.
Once a principal applicant's application was approved in principle, he or she had to, amongst other things, provide acceptable evidence of having transferred and invested his or her nominated funds in accordance with the Investor policy. The principal applicant, and any accompanying partner and dependent children, could then be issued with residence visas and permits, subject to requirements under section 18A of the Immigration Act 1987.
The main requirement that the Investor policy imposed under section 18A was that the principal applicant retain the investment funds in New Zealand, in an acceptable investment, for a minimum of two years. After the expiry of the two-year investment period, the principal applicant could apply for the requirements to be cancelled (i.e. apply for his or her residence permit, and those of any accompanying partner and dependent children, to be made unconditional).
From 20 November 2002, stricter English language requirements came into force under the Investor policy. This led to a significant reduction in the number of applications being lodged under the Investor policy.