Regulators in Australia and New Zealand have reached an agreement that will allow financial advisors to serve clients in both countries with their existing qualifications.
The Australian Securities & Investments Commission (ASIC) and New Zealand’s Financial Markets Authority (FMA) announced a mutual recognition arrangement that will enable financial advisors to provide services in each other’s countries based on the qualifications and experience they have attained from their home country.
The FMA has granted an exemption for Australian advisors allowing them to apply to be authorized financial advisers in New Zealand based on their Australian qualifications. Australian advisors who hold specified qualifications will be exempt from the educational requirements for advisors in New Zealand. The exemption is subject to a number of conditions, such as compliance with a professional code of conduct
To enable New Zealand-based advisors to operate in Australia, the ASIC has amended its regulatory guides which set out the minimum training requirements for individual advisors in Australia. And, recognition has been given to New Zealand advisors to enable them to practise in Australia in certain areas.
The so-called trans-Tasman mutual recognition of advisors will take effect July 6.
“The announcement is a significant step which supports our mutual desire for a more dynamic single economic market between New Zealand and Australia – particularly in financial services. It is important that we have taken this early initiative in the area of financial advice – which is so critical to the financial health of our communities on both sides of the Tasman,” said FMA CEO, Sean Hughes.
ASIC chairman, Greg Medcraft, added, “The mutual recognition arrangements will strengthen the Australian and New Zealand financial services industries by increasing competition and lowering transaction costs. We hope many financial advisors here and in New Zealand take advantage of this new arrangement.”