This 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, as part of a drive for greater ease of movement between the Antipodean countries.

FMA chief Sean Hughes said: “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.”

ASIC chairman Greg Medcraft said: "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."

The trans-Tasman mutual recognition of financial advisers will take effect from 6 July 2012.