Regulator seeks to understand barriers, innovation, and future opportunities
The Financial Markets Authority (FMA) has launched a comprehensive review of how consumers access financial advice in New Zealand.
The aim is to better understand the challenges and opportunities affecting access, and to ensure the financial advice regime introduced in 2021 is delivering on its goals.
Since the financial advice regime took effect in March 2021 under amendments to the Financial Markets Conduct Act, FMA has actively monitored how accessibility and quality of advice interact.
“Our view is quality and accessibility are complementary but can also have trade-offs,” it said. “Ensuring consumers can access quality financial advice when they need it is crucial. We know there are many positive impacts on consumers who receive good quality financial advice.”
The review will support the FMC Act’s purpose of ensuring both availability and quality of financial advice. Informed by industry and stakeholder feedback gathered earlier this year, FMA will now begin direct engagement with advisers and consumers through targeted questionnaires, interviews, and consumer research.
“What we learn from this review will inform our areas of regulatory focus, including deciding what further work we may need to undertake in our role of monitoring the regime and ensuring it is fulfilling its purpose,” it said.
Four key focus areas
The review will center on four key themes:
Consumer demographics and preferences
FMA will assess which consumer groups are underserved and how demographics, financial literacy, and confidence impact advice uptake. It will also explore informal advice channels such as family, social media, or financial wellbeing organisations.
This includes understanding advice access from a te ao Māori perspective and identifying potential “advice gaps” where consumers who would benefit from advice are not engaging with it.
Innovation and digital advice
Although the financial advice regime allows for digital advice, fewer than 3% of FAPs currently offer it.
FMA wants to understand barriers to digital innovation, the impact of emerging technologies such as AI, and how the Consumer Data Right (CDR) might improve access.
Remuneration structures and business models
The review will look at how fees and commission models influence consumer access, alongside competitive dynamics and the viability of new entrants.
This includes a separate review into how business models affect client care and advice quality.
Ease of providing regulated financial advice
Many FAPs may be cautious about compliance under the principles-based regime, which could limit simplified or general advice offerings.
The review will assess whether the removal of class and personalised advice categories has had unintended consequences, and whether advisers feel confident delivering basic, affordable advice to everyday consumers.
Industry engagement and next steps
Earlier in 2025, FMA consulted on its proposed terms of reference and received 25 submissions, with broad support for the review’s direction.
“We plan to publish any relevant insights and engage with the market on our findings,” it said. “We will aim to share constructive insights that may highlight opportunities for improvement, for individual financial advice providers or the sector as a whole.”
If barriers to access are identified, FMA will consider actions such as issuing guidance, evolving its monitoring priorities, or recommending policy changes.
Goal: Quality financial advice available to all New Zealanders
“Insights from our review will help ensure we take appropriate actions to improve outcomes both for consumers and the financial advice industry, and that the financial advice regime succeeds in improving the availability of quality financial advice,” FMA said.
The regulator expects to complete its research and engagement phase by the end of 2025, with insights to follow. For more information, read the FMA media release and access the review’s terms of reference.
