New Zealand’s Financial Markets Authority will review the accessibility of advice to determine if changes to regulations in the past few years have delivered for consumers. 

CEO Samantha Barrass says the review will focus on ease of provision; consumer preferences and demographics; business models and market dynamics; and digital innovation.

“While we don’t want to pre-empt any of the findings, broadly our work on access to advice will first and foremost inform our approach to regulating financial advice,” she told last week’s Financial Advice New Zealand Conference in Christchurch. 

“The review will look to see what may be preventing access, and consider any unnecessary regulatory burden that needs to be addressed by us.

“Ultimately, this review is about ensuring we are delivering on the promise of the new financial advice regime, which seeks to enable greater access to quality advice for all New Zealanders.”

The current advice regime began in 2021. It requires advisers to comply with disclosure rules aimed at improving transparency and outcomes for consumers. 

Ms Barrass said: “It seems like an opportune time to reflect on whether the regime is delivering on the goals it had set out to achieve. Availability and quality of financial advice are cornerstones of the regime, and indeed written into the legislation’s purpose … But we know that many New Zealanders do not access financial advice in the first place. We want to understand why that is.” 

She says there are 1410 licensed financial advice providers, with 8472 advisers operating in the market.

FMA data shows life and health insurance are the most common financial products for which advice is provided.

Financial Advice New Zealand has welcomed the review.

“Quality advice helps consumers navigate through the complexities of financial decision-making at critical life moments, leading to financial wellbeing and peace of mind,” CEO Nick Hakes said.

“It is critical that New Zealanders feel they can access quality advice that is best suited to their personal situation.”

The FMA has released the review’s proposed terms of reference for consultation. The closing date for submissions is May 30.