TPP welcome for financial services

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New Zealand signing the Trans-Pacific Partnership (TPPA) is likely good news for the financial services sector, it has been predicted.

Friday, October 16th 2015, 6:00AM 1 Comment

by Susan Edmunds

The deal removes tariffs from almost all New Zealand exports.

New Zealand exporters will have just under $260 million in tariffs they pay each year dropped and New Zealand will give up charging $20 million imports.

It is not yet clear whether the deal will limit New Zealand's ability to control foreign investment in assets such as residential property.

But Benjamin Liu, University of Auckland commercial law lecturer, said overall the deal was good news for the financial services industry.

He said foreign providers who came to New Zealand did not face high hurdles anyway - they can register and set up a business as long as they have a physical address in New Zealand.

"The market is already open to overseas providers, most banks are owned by Australians. Once we are a secure member of the TPP our local providers can have easy access to overseas markets."

He said it would be a positive step for organisations wanting to break into protectionist east Asian markets.

Peter Neilson, chief executive of the Financial Services Council, said his organisation was supporting moves such as the Asian Regions Funds Passport, which will enable products and services registered in one country to be recognised as complying in other jurisdictions.

It will facilitate the cross-border marketing of managed funds.

"These moves would be of significant benefit to both clients and providers as both want flexibility to operate across the region. It is expected that the TPPA will accelerate that process amongst the signatory countries," Neilson said.

John Berry, of Pathfinder Asset Management, said the deal was good for the New Zealand economy but he was not expecting it to be a game-changer for funds management.

Tags: funds management

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