21 Dec 2009

Profitable niche seen for NZ in financial services

11:32 am on 21 December 2009

The financial services firm BNP Paribas says New Zealand is well-placed to become an exporter of high-value middle- and back-office services for fund management companies.

The Capital Market Development Taskforce recommends tax changes to pursue this aim, and develop the kind of niche that Ireland and Liechtenstein currently occupy.

The head of BNP Paribas's New Zealand operation, Hugh Stevens, says back-office services are the plumbing of capital markets, providing payment, clearing and settlement systems between firms.

He says New Zealand is seen as trustworthy, and its timezone suits Asian investors, because it straddles that region and the US.

Mr Stevens sees the taskforce's initiative as a way of encouraging international investment into the New Zealand financial services industry.