Australia looks attractive to advisers...nearly

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Trans-Tasman recognition has made moving to Australia a more attractive prospect for some young advisers.

Monday, July 30th 2012, 7:04AM 1 Comment

by Niko Kloeten

The outflow of Kiwis across the ditch has been a hot topic for several years, with just under 500,000 New Zealanders now living in Australia.

But advisers have had to jump through several hoops to practice in Australia's strict regulatory environment, making the switch less appealing.

Good Returns spoke to a 30-year-old adviser, who didn't want to be named, who said he'd started thinking seriously about moving across the Tasman the moment he heard about the recently-announced recognition agreement between Australia's ASIC and New Zealand's FMA.

"I thought, ‘that's it, I'm out of here'.  The salaries are so much higher over there but it used to be quite difficult for advisers to move there; you had to do a whole new diploma based on Australian products.

"Now AFAs can effectively go over there and give advice on everything but superannuation funds and margin lending products."

However, Institute of Financial Advisers president Nigel Tate said a wholesale departure of advisers for Australia wasn't on the cards.

"I don't see that occurring; people will move based on a whole range of factors including lifestyle but the amount being given up [in the trans-Tasman recognition agreement] is miniscule and advisers have some other issues going forward in Australia."

He said the agreement would allow for increased competition and one of the biggest benefits was that it allowed practitioners to advise their Australia-based clients while in Australia.

The adviser also wasn't sure if his Tasman-hopping plans were common among other young participants in the industry.

"I don't really know any other advisers my age; it's a bit of an old man's game."

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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