UK and New Zealand to benefit from MoU on Reciprocal Arrangements
Source: gov.uk (2025-09-26)

UK’s Financial Reporting Council–New Zealand’s Financial Markets Authority Memorandum of Understanding on Reciprocal Arrangements: Two-Year Milestone Reached

The Memorandum of Understanding of Recognition Arrangement (MOURA) between the UK’s Financial Reporting Council (FRC) and New Zealand’s Financial Markets Authority (FMA) has reached its two-year anniversary. Eligible auditors in both the UK and New Zealand can utilise the recognition pathway established under the agreement.

Both New Zealand Licensed Auditors and UK Statutory Auditors were able to benefit from the agreement instantly. However, New Zealand individuals holding an approved audit qualification and residing in the UK are required to complete a 2-year adaptation period. The adaption period could only commence after the date the agreement was reached. The 26 September 2025 marks a significant milestone as many CA ANZ and CPA Australian auditors working in the UK may potentially be eligible to apply under the terms of the MOURA.

This milestone reinforces the strategic intent of the MOURA: to support professional qualifications recognition, strengthen bilateral ties, and enhance audit market resilience through broader access to experienced talent.

A reminder to those considering this route:

1. Summary of the Agreement
- Parties: UK’s Financial Reporting Council (FRC) & New Zealand’s Financial Markets Authority (FMA)
- Signed: 26 September 2023 — in effect from the same date
- Purpose: Provides a pathway for auditors holding a professional audit qualification in either the UK or New Zealand to apply for recognition in the other jurisdiction and gain audit rights.
Approved Third Country Qualifications in the UK:
- Licensed Auditors (licensed to conduct FMC audits in NZ) — subject to a UK aptitude test
- CA Qualification (CAANZ, NZ variant of Taxation papers) — subject to a 2-year adaptation period in the UK
- CPA Qualification (CPA Australia in NZ, with specific audit and taxation electives) — subject to a 2-year adaptation period in the UK
UK Qualifications recognised in New Zealand

Holders of an Audit Qualification granted by a UK Recognised Qualifying Body (ACCA, ICAEW, ICAI, ICAS).

Individuals who hold the status of Responsible Individual granted by a Recognised Supervisory Body.

Equivalence: FRC decided these qualifications are equal to UK ones. This means UK and New Zealand auditors can get similar rights in each other’s country.

2. Case Study – How It’s Been Used

Scenario A: A UK qualified statutory auditor with over a decade of experience relocates to Wellington in 2024.
- Applies under the MOURA, presenting proof of UK qualification and good standing
- Completes NZ specific tax and law requirements
- Gains full signing rights within months, enabling immediate contribution to local audit engagements
Outcome:
- The NZ firm fills a senior audit role during a busy reporting season
- The auditor continues their career progression without lengthy retraining
Scenario: A NZ Licensed Auditor relocates to London in 2024.
- Applies under the MOURA, presenting proof of NZ Licensed Auditor status and good standing
- Completes aptitude test in UK tax and law
- Once nominated by a UK registered audit firm, gains full signing rights within months, enabling immediate contribution to local audit engagements
Outcome:
- The UK firm fills a senior audit role during a busy reporting season
- The auditor continues their career progression without lengthy retraining
Scenario B: A NZ qualified member of CA ANZ or CPA Australia relocates to London in June 2023.
- Applies under the MOURA in October 2025 once they have 2 years’ audit experience in the UK post MOURA signing date of September 2023
- Presents proof of NZ qualification, good standing, and 2 years’ UK audit experience within an approved UK audit firm
- Once nominated by a UK registered audit firm, gains full signing rights, enabling contribution to local audit engagements
Outcome:
- The UK firm fills a senior audit role with the intention to nominate them for audit signing rights in 2 years
- The auditor continues their career progression while gaining the necessary experience to be able to sign a UK statutory audit report
Scenario C: A NZ qualified member of CA ANZ or CPA Australia relocates to London in October 2025.
- Applies under the MOURA in October 2027 once they have 2 years’ audit experience in the UK
- Presents proof of NZ qualification, good standing, and 2 years’ UK audit experience within an approved UK audit firm
- Once nominated by a UK registered audit firm, gains full signing rights, enabling contribution to local audit engagements
Outcome:
- The UK firm fills a senior audit role with the intention to nominate them for audit signing rights in 2 years
- The auditor continues their career progression while gaining the necessary experience to be able to sign a UK statutory audit report
3. Forward Facing Aspect
- Must hold one of the approved audit qualifications listed above
- Must meet experience requirements as detailed in the regulations of FMA and the UK recognised Supervisory Bodies.
- May need to complete an aptitude test or adaptation period depending on qualification type
- Further eligibility details can be found in the FRC Guidance to Recognised Supervisory Bodies: https://media.frc.org.uk/documents/New_Zealand_MOURA_Guidance_Note.pdf
- Supports mobility of experienced audit professionals
- Strengthens bilateral professional ties between the UK and NZ
- Enhances audit market resilience through broader talent access
4. Complimentary Quotes

The FRC’s Chief Executive Officer Richard Moriarty said:

Reaching the two-year milestone of our MoU with New Zealand’s Financial Markets Authority represents a significant achievement in international regulatory cooperation. This agreement has successfully created meaningful pathways for experienced auditors to practise across both jurisdictions, directly strengthening our audit markets through enhanced professional mobility.

The MOURA demonstrates how strategic regulatory recognition delivers tangible benefits – maintaining rigorous standards while enhancing market resilience across both countries.

The FMA’s Chief Executive Officer Samantha Barrass said:

The FMA has welcomed the memorandum of understanding, which provides opportunities for auditors from both countries to contribute and broaden knowledge and experience across borders. Both countries can be assured of the professional competence equivalence by applicants.

The pathway has been used by approximately 20 auditors over the last two years seeking recognition in New Zealand.

The FMA remains committed to supporting greater alignment of the two countries’ auditor markets through mutual recognition and cooperation in the oversight of auditors.

If you would like to discuss this further or have any questions, please contact

FRC: www.frc.org.uk (https://www.frc.org.uk/library/supervision/professional-bodies-supervision/international-agreements-and-arrangements/)

ACCA: www.accaglobal.com (http://www.accaglobal.com)

ICAEW www.icaew.com (http://www.icaew.com)

ICAI: www.charteredaccountants.ie (http://www.charteredaccountants.ie)

ICAS: www.icas.com (http://www.icas.com)

FMA: www.fma.govt.nz (http://www.fma.govt.nz)

CA ANZ: www.charteredaccountantsanz.com (http://www.charteredaccountantsanz.com)

CPA Australia: www.cpaaustralia.com.au (http://www.cpaaustralia.com.au)