From left to right: Andy Crow - Manager Financial Advice, Zenas Kim - Manager Financial Advice, Anna Godfrey - Senior Adviser Financial Advice, Samantha Barrass - Chief Executive and Derek Grantham - Executive Adviser

Kia ora koutou

It was great to attend the FANZ National Adviser Conference in Auckland last week - we valued the opportunity to catch up with advisers and hear how things are going across the financial advice sector. 

You may have also heard from our Chief Executive, Samantha Barrass, who outlined observations from our review of access to financial advice. We have findings from the review across two reports, delivering on our commitment in the 2025/26 Financial Conduct Report to better understand the challenges and opportunities affecting access to advice.

We found 28% of New Zealanders had used a financial adviser in the past 12 months. Many consumers use family, friends, and online sources for financial decision making. Our engagement with the sector highlighted challenges relating to consumer understanding, compliance approaches, and the way advice is delivered. Over the remainder of the year, we will be engaging further with the sector through webinars, forums and roundtables to provide opportunities to ask us questions and discuss the findings. More information about this is available in the access to financial advice section below. 

We are also working hard to finalise our interactive dashboard of financial advice provider regulatory returns data. While all licensed financial advice providers are required to complete a regulatory return each year, our new dashboard is in its final stages and is expected to be released later this month. We look forward to sharing this with you. 

As we move into the final quarter of the FMA’s financial year, we are reflecting on how we interact with the financial advice sector. We always welcome your feedback. Later this year, we will be holding our annual financial advice providers forums, where you can hear from the FMA and tell us what’s on your mind. Invites will be shared soon. 

We hope you enjoy this newsletter, and we look forward to continuing our engagement with you.

Andy Crow, Manager Financial Advice and Zenas Kim, Manager Financial Advice

Access to financial advice in New Zealand

Our access to financial advice reports, published on the same day as the FANZ National Adviser Conference, focus on supporting better outcomes for both the financial advice sector and consumers. One presents the perspectives of the sector, while the other brings forward the voices of consumers from the survey we conducted. 

Our review looked at where consumers go for advice and the barriers they face, opportunities for innovation, and how regulation is impacting access to financial advice.  

The findings show that some consumer groups remain underserved, often shaped by demographics and financial literacy. Many New Zealanders rely heavily on family, friends and online resources to guide their financial decisions – the latter source signalling a shift towards digital channels. However, we heard that face-to-face conversations still matter. New Zealanders want both digital accessibility and human connection. 

Head of Financial Advice Romil Ghelani said the role of regulation is not only to protect consumers, but to enable availability of financial advice. “A principles-based regime provides flexibility and room for innovation, allowing advice to be delivered in ways that are appropriate for different consumer needs, channels, and levels of complexity.”

“Through our engagements later this year, we will look to discover how this flexibility is being applied in practice, including tailoring the nature and scope of advice. We remain committed to ongoing dialogue with the sector. If financial advice providers are considering new or innovative approaches to advice delivery, you are welcome to contact us. We will be engaging in the coming months with the sector through webinars, forums and roundtables.” 

Thank you to everyone who contributed to this review.

Chief Executive Samantha Barrass (centre) with FinTech NZ Executive Council Member Tina Groark (left) and Commerce Commissioner Bryan Chapple (right) at the FinTech Hui Taumata in Wellington

Artificial intelligence in financial advice

The rapid advances in technology and increasing adoption of artificial intelligence (AI) are reshaping how consumers access financial services. We have observed potential current and near-term use cases for AI within the financial advice sector. Our access to financial advice review found many New Zealanders rely heavily on online resources to guide their decisions, and emerging consumer openness to AI-enabled advice. 

In response, we are planning a thematic review focused on the use of AI in financial advice, including generative AI and agentic AI. Our primary focus is AI use cases for financial advice services to retail customers. 

Through this review, we aim to understand how AI is being used in practice, the benefits and risks it presents, and any regulatory barriers or areas of uncertainty firms are experiencing. Our engagement is expected to include a mix of short surveys, individual meetings, and roundtable discussions. 

We will begin engaging with industry participants in the coming months, with further updates to be shared as the review progresses.

Contracts of Insurance Act 2024 – overview of key changes

The Contracts of Insurance Act 2024 (CoI Act), together with related amendments to the Fair Trading Act and the Financial Markets Conduct Act, will take effect on 15 November 2027. The CoI Act applies to both consumer and non-consumer insurance contracts.

Below is a summary of some key changes affecting policyholders, insurers, and intermediaries. Please note this is not an exhaustive list.

Policyholders

Policyholders have duties of disclosure before an insurance contract is entered into or varied:

• For consumer insurance contracts, policyholders must take reasonable care not to make a misrepresentation. This obligation will be met by answering insurers’ questions honestly and accurately.
• For non-consumer insurance contracts, policyholders will be required to present the risk fairly to the insurer.

Insurers

Insurers must apply proportionate remedies where a policyholder has failed to disclose information or makes a misrepresentation. Any remedy must reflect what the insurer would have done had it received the correct information when the contract was entered into or varied. This limits the ability of insurers to void a policy in full.

Insurers must also:

• clearly explain policyholders’ disclosure duties and the potential consequences of failing to meet those duties, before a policy is entered into or varied,
• ensure consumer insurance contracts are written and presented in a clear, concise and effective manner, having regard to whether it helps consumers understand their rights and obligations, and
• investigate, assess, and pay claims within a reasonable timeframe.

Intermediaries

Intermediaries are required to pass on to insurers any material information they hold about a policyholder before an insurer enters into, or varies, a contract of insurance.

Where an intermediary fails to meet this obligation and the insurer suffers loss as a result, the insurer may seek compensation from the intermediary. 

Throughout this year, the FMA will be engaging with insurance intermediaries to understand how they are preparing to implement the CoI Act. 

Notification obligations for financial advice providers 

We want to remind financial advice providers of their notification obligations to the FMA. These notifications help us to supervise licence holders.

Standard Condition 5 for financial advice provider licences – financial advice providers must notify the FMA within 10 working days of discovering any event that materially impacts the information security of its critical technology systems.

Standard Condition 7 for financial advice provider licences – financial advice providers must notify the FMA, in writing, within 10 working days of implementing any material change to the nature of, or way, its financial advice service is provided.

Financial Markets Conduct Act 2013 – licensed firms have an obligation to report certain matters to the FMA, including contravening (or being likely to contravene) their market services licence obligations in a material respect, or a material change in circumstances.

Regulation 191 of the Financial Markets Conduct Regulations 2014 – licensed firms must report matters such as insolvency, relevant legal proceedings, or changes to key personnel, ownership or legal structure.

Case study

Good Advice Limited is a Class 2 financial advice provider planning changes to its business. These changes include: 

• The development and introduction of a digital advice tool to provide regulated financial advice to clients.
• Changes to the board of directors, including the retirement of one director and the appointment of a new board chair.
• The introduction of an AI-enabled tool to capture notes during engagements between clients and financial advisers.

What does Good Advice Limited need to report to the FMA? In this scenario:   

Digital advice tool – the introduction of a digital advice tool represents a material change to the way the financial advice provider provides its financial advice service. Under Standard Condition 7 the financial advice provider must notify the FMA, in writing, within 10 working days of implementing this change. 

Changes to the board – under Regulation 191(1)(c)(ii) of the Financial Markets Conduct Regulations 2014, changes to the composition of the board, including the appointment of a new chair and the removal of directors, must be notified to the FMA. These changes can be reported through the FMA Online Services portal. 

AI note taking – there is no requirement to notify the FMA of the use of an AI tool solely to capture and maintain client interaction records. However, the use of such a tool must meet the financial advice provider obligations under the record-keeping standard condition.

FMA engagement, monitoring and enforcement

These highlights are from our work across licensing, engagement, monitoring and enforcement activity in the financial advice sector since 1 December 2025.

64 financial advice provider licences approved  

This has been a combination of new entrants into the industry, providers looking to introduce a financial advice service, and firms which were previously an authorised body under another financial advice provider deciding to hold their own financial advice provider licence.

10 market engagements and meetings in the sector 

These include: 

• Aon Health Solutions Conference
• Community Brokers Network NZ Conference
• FANZ National Adviser Conference 
• Finance and Expenditure Select Committee
• Financial Services Federation Women in Finance 
• FinTechNZ Fintech Hui Taumata 
• Generate Conference 
• INFINZ International Women’s Day breakfast 
• IOSCO Asia Pacific Regional Committee 
• NZ Banking Association March Council meeting 

If you’d like to invite the FMA to speak at an adviser event or get-together, please email Events@fma.govt.nz   

15 monitoring engagements completed and 6 in progress (since 1 July 2025)

In line with the FMA's regulatory priorities set out in our 2025/26 Financial Conduct Report, these financial advice monitoring visits have focused on: 

• Conduct impacting consumers in vulnerable circumstances (particularly in relation to insurances and mortgages) 
• Consumers and investors understanding fees, incentives, and commissions 
• Effective protection of client assets 
• Ensuring customers are treated fairly when things go wrong   

Following reviews, we issue feedback letters so financial advice providers can address findings and take remedial steps. Where we identify harm or material breaches of licence obligations, we progress the matter to our Response and Enforcement function to consider a formal regulatory response.

18 enquiries  

We received and responded to 18 enquiries from individuals and organisations relating to financial advice and financial advice providers. These included a request to demonstrate a new AI tool, how to evidence a client’s understanding of the nature and scope of advice, and the territorial scope of financial advice.

20 misconduct reports regarding a financial advice provider or a financial adviser lodged and assessed 

Notable themes include: 

• Unsolicited contact (cold calling) 
• Concerns around misleading sales promotions 
• Misrepresentation of insurance policy coverage (including exclusions) 
• Allegations of unethical conduct 
• Misleading or incorrect disclosures 

Not all notifications result in an investigation or formal regulatory action. Depending on the circumstances, our response may involve reviewing the entity’s risk profile, conducting desk-based or onsite reviews, making further enquiries, or engaging informally with the entity. 

3 administrative actions relating to financial advice and 1 enforcement action relating to a financial adviser lodged and assessed 

FMA cancels HGL’s financial advice provider licence

FMA censures Opes for breaching financial advice provider licensee obligations

Former NZ financial adviser sentenced for breaching stop order

FMA cancels Saanvi’s Financial Advice Provider licence

Spotlight: Inside a scam - IPO scams 

We are seeing an increase in IPO and pre-IPO scams targeting consumers. These scams typically involve offers to invest in shares that don’t exist.

Scammers often impersonate licensed brokers or well known companies, using professional looking websites, and promise early access or high returns but the investment is fake and money is lost.  

Common red flags

• Unexpected contact 
• Moving the conversation off-platform
• Pressure and urgency 
• Suspicious payment requests 
• Too good to be true promises 

What advisers can do to help fight scams 

• Remind clients that genuine IPO access will come through established, licensed providers - not unsolicited outreach 
• Help clients verify IPO opportunities 
• Stay alert to impersonation of firms
• Report suspected scams to the FMA

Former NZ financial adviser sentenced for breaching stop order

Former financial adviser David McEwen has been convicted on four counts of breaching an FMA Stop Order. He has been banned from acting as a director, promoter, or company manager in New Zealand, barred from providing financial advice for seven years, and fined $15,000.

The charges relate to breaches of a 2023 Stop Order designed to prevent financial harm to his clients. McEwen continued to seek money from former clients, receiving around $17,000 after the order was issued. The FMA had previously issued warnings and advised former and existing clients to check their credit and debit card statements for any unauthorised payments.

Head of Enforcement Margot Gatland said the case demonstrates the importance of enforcement in preventing harm to consumers and maintaining market integrity.

FMA cancels Saanvi’s Financial Advice Provider licence

The FMA has cancelled the licence of Saanvi 2022 Limited, trading as Saaga Mortgages (Saanvi), after finding it submitted mortgage applications with altered supporting documents and was unable to provide the originating emails or source records. The FMA also found that Saanvi’s clients were not informed of a referral arrangement involving payments to a third party involved in the advice process. 

Helena Lewis, Head of Perimeter and Response, said the case underscores the importance of ethical conduct and trust in financial advice. Acting ethically is critical to protecting consumers, maintaining trust and the integrity in the financial advice sector. 

Warnings and alerts 

We regularly publish warnings containing the names of businesses or individuals you should be wary of when investing. 

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