New Zealand’s financial services industry has moved a step closer to regulatory alignment with Australia.

The two countries have signed a memorandum of understanding, designed to promote greater co-operation between regulatory commissions on both sides of the Tasman.

The Australian Securities and Investments Commission (ASIC) and the New Zealand Companies Office have agreed to share information for their operational and enforcement activities.

NZ Registrar of Companies Neville Harris and ASIC Chairman Jeffery Lucy say the document will further enhance business opportunities in both countries.

They are looking at further alignment opportunities “in order to simplify the corporate regulatory obligations for companies operating in both markets”.

The memorandum is seen as a precursor to further regulation in NZ, but insurers there have welcomed the news nonetheless.

IAG New Zealand’s Head of Corporate Resources Giselle McLachlan told Sunrise Exchange News most companies are working closely with the NZ Government ahead of a scheduled adoption of tighter regulations from 2008.

“Some further, targeted regulation would be good for consumers,” she said.

IAG NZ is also confident more freely flowing information will not result in privacy concerns for policyholders in either country.

“As with any regulation, the consumers’ best interests should be paramount,” Ms McLachlan said.