Zak Zuska is a wealthy United States-based investor. Zak wishes to buy a 100-hectare farm near Queenstown. Zak has no intention of farming but wants to have somewhere to live in the event of civil unrest in the US. Zak is concerned that he may not be able to buy the farm directly because, in 2021, a US court fined him a civil penalty of $3 million for insider trading. However, Zak's daughter Cara is a New Zealand resident. Cara is a ski instructor in Queenstown. Zak has been advised that, if he forms a partnership with Cara, in which each holds a 50% interest, they will be able to buy the farm together. 

Explain to Zak whether he is likely to be allowed to buy the farm either alone or in partnership with Cara.

Answer rating: 100% (QA)

Zak purchasing the farm alone may pose challenges due to the civil penalty for insider trading in ... View the full answer