Australia and New Zealand are a step closer to forming a single economic entity, including a measure that would allow financial advisers to operate across the Tasman without additional qualifications, Australia’s Parliamentary Secretary to the Treasury said yesterday.
In addition, the Trans-Tasman initiative to form a single economic market feeds into the so-called Asian passport and other efforts to transform Australia into a regional financial services hub, Bernie Ripoll told InvestorDaily.
“It can further that and it will further that,” Ripoll said.
The Asia Region Funds Passport, or Asian passport, aims to extend Australia’s fund management reach to financial services in Asia and the region’s $2.6 trillion in funds under management (FUM), or about 13 per cent of global FUM.
“There have been positive discussions about how, through a closer economic relationship and a single economic market, Australia and New Zealand can multiply efforts and capacity into the Asia-Pacific on all of those fronts by using the expertise in both countries,” he said.
Ripoll met yesterday with New Zealand Commerce Minister Craig Foss as part of the Trans-Tasman Outcomes Participation Group, which aims to streamline business, regulatory and other mechanisms between Australia and New Zealand.
“Minister Foss and myself had a very productive and a very good meeting in relation to a whole range of matters, particularly across financial services between Australia and New Zealand,” Ripoll said.
“The capacity for both countries to deal with issues such as superannuation, funds, markets, investments, taxation, retirement incomes and a whole range of other factors are all being discussed and being worked on in different forms.”
The financial services policy portion of the Trans-Tasman outcomes proposal, to be completed by the end of 2014, includes plans for a unified product disclosure requirement and alignment of corporate trustee regimes between the two countries, as well as allowing financial advisers to work on either side of the Tasman.
“A key point, too, is that New Zealand has recognised what Australia is doing in terms of the [Future of Financial Advice] changes,” Ripoll said.
“They are making similar changes in New Zealand.”
Ripoll said the initiative sought to add value to existing activities in both countries with a view to job creation.
“The positive benefits of that are better trade, more jobs, more business links and business ties, more opportunity for jobs for both countries.”
The breaking down of borders comes amid unprecedented Australian financial services job losses as consolidation and technology shrink the sector’s workforce.
