New Zealand financial providers often fail to adequately explain fees charged or why a product is appropriate for a client, a survey for the Financial Markets Authority (FMA) has found.

It follows the publication of FMA guides on conduct and how customers should expect their providers to behave.

“We thought it was also important to hear from consumers directly about what’s actually happening, through our survey,” FMA Director of External Communications and Investor Capability Paul Gregory said. “We’ll share with providers what their customers are telling us about them and, where there are issues, we’ll expect to see them do better.”

More than two-thirds of customers say their provider is knowledgeable and the information it provides is easy to understand. Providers also score well on fairness and professionalism.

But only half of investors agree their provider has explained fees and just 52% of respondents agree their provider has helped them understand why a product is appropriate for them.

The research conducted by Colmar Brunton questioned 1000 New Zealanders.

The FMA plans to conduct the survey annually.

“The changes that have been introduced through the FMA licensing of financial service providers put good conduct at the heart of the industry’s priorities,” Mr Gregory said.