Growing market raises competitive bar
New Zealand’s licensed financial advice market is expanding, with fresh FMA data pointing to more providers, more advisers, and a rapidly growing digital advice channel.
FMA’s second annual analysis of regulatory returns from licensed financial advice providers shows provider numbers rose 10% year‑on‑year to 1,553, while the number of financial advisers climbed almost 9% to 9,197. Half of all licence holders operate with just one adviser, but three very large providers each have more than 500 advisers, underscoring a barbell market structure that spans small specialist firms through to scaled advice businesses.
In a media release, Clare Bolingford (pictured), FMA’s executive director of licensing and supervision, said “regulatory returns are essential for the FMA, so we can focus our regulatory effort where the risks and opportunities are greatest”.
Bolingford added that “the continued growth in adviser numbers, alongside the rapid increase in the uptake of digital advice, shows how the sector is evolving.”
Digital advice accelerates as clients go online
The most striking shift is in digital advice. The estimated number of clients receiving advice through digital facilities almost doubled over the year, from roughly 86,500 in 2024 to more than 164,800 in 2025. The number of licensed providers offering digital advice also rose 21%.
In a separate March 2026 review of access to advice, FMA noted that technology‑enabled and hybrid advice models – including AI‑supported tools – can help make advice more scalable and consistent, provided firms maintain strong governance and conduct controls.
Fewer upheld complaints, but data quality under scrutiny
On conduct, regulatory returns show fewer complaints being made to advice providers than a year earlier. More complaints were escalated to dispute resolution schemes, but the proportion upheld fell sharply and nearly all were resolved within three months.
Bolingford said “complaints give providers critical insights into where things can go wrong, what can be improved, and how firms can strengthen their systems to ensure better consumer outcomes”.
However, FMA also flagged concerns about inaccurate or incomplete returns from some providers. Bolingford reminded the sector that “accurate and timely regulatory returns are a regulatory requirement”, and that the regulator depends on high‑quality data to oversee advisers and support fair outcomes.
Those expectations mirror FMA’s 2025–26 conduct priorities, which specifically call out advice on residential mortgage lending and require firms to be able to demonstrate fair‑conduct outcomes through robust systems, records and governance.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
