New Zealand Studying Set Up Of Overseas Pension Fund Hub
Tuesday, February 16, 2010
New Zealand’s Prime Minister, John Key, has disclosed that the government
is studying one of the recommendations of the Capital Markets Taskforce in December
last year, that New Zealand has the opportunity to become a significant player
in specialized financial service niches in the Asia-Pacific region.
The particular recommendation that the government is pursuing is that its location
gives New Zealand the opportunity to develop a regulatory and tax regime that
would support the provision of high-value middle and back office support for fund
management, especially for overseas pension funds.
Such funds would be registered and administered in New Zealand. While the study
is still at an early stage, the government is attracted by the jobs that would
be created by the businesses in the new sector. It has been estimated that up
to 5,000 new posts could be created, dependent on its success.
While income and gains within the funds themselves would remain untaxed, taxation
of the profits of the fund administration companies would be of further benefit
to the country.
While details of how the recommendation could be effected were not given in
the taskforce’s report, it has been reported that they were provided directly
to the Prime Minister. The project is still at an early planning stage, with
its structure and the technical changes necessary for its implementation still
to be finally decided.