The Australian Securities and Investments Commission (ASIC) and New Zealand's Financial Markets Authority (FMA) have announced mutual recognition arrangements relating to the qualifications of financial advisers, making it easier for advisers to work in both jurisdictions.
The agreement is effective from 6 July this year and means qualifications and experience advisers have attained from one country will be recognised in the other.
"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," said FMA chief executive Sean Hughes.
ASIC chairman Greg Medcraft said the arrangements will strengthen the Australian and New Zealand financial services industries by increasing competition and lowering transaction costs.
Trans-Tasman Mutual Recognition legislation already applies to Australian financial services licence holders, but most of these licence holders are firms or companies, meaning a different mechanism was required to enable individual advisers to operate in both jurisdictions, ASIC stated.
FMA has now granted an exemption for qualified Australian advisers, meaning they can apply to be authorised financial advisers (AFAs) in New Zealand based on their existing Australian qualifications. This will make them exempt from additional education requirements, but they will still be bound by New Zealand's Code of Professional Conduct for AFAs, ASIC stated.
ASIC has amended its regulatory guides which set out the minimum training requirements for individual financial advisers in Australia to recognise New Zealand AFAs and Qualifying Financial Entity advisers to enable them to practise in Australia in certain areas.
