Ms Farrell makes the move from her current position as head of sovereign and institutional, Asia-Pacific ex-Japan, at JP Morgan Asset Management.
In her new chief executive role, Ms Farrell will oversee all of JP Morgan Asset Management's operations in Australia and will assume direct responsibility for the company's funds and institutional businesses in the country.
Both head of Australia institutional Stephen Alcorn and head of Australia funds David Halifax will report to Ms Farrell.
Ms Farrell expects to relocate to Australia from Hong Kong early next year.
In her new role she will continue to report to Patrick Thomson, international head of institutional clients and to Michael Falcon, chief executive of Asia-Pacific, global investment management.
Commenting on the appointment, Mr Falcon said JP Morgan Asset Management believes there is a "significant market opportunity" for all of its investment businesses in the Australian market.
"I am very pleased to appoint Rachel to this new role as her extensive and well-rounded experience in the financial services industry makes her an ideal candidate," Mr Falcon said.
"Also, her strong leadership, coupled with an impressive track record with the firm, will further leverage the synergies across all of our businesses and will help drive our continued success in the country."
