The Financial Market Authority’s (FMA) recent report, Access to financial advice in New Zealand: Challenges and opportunities for the financial advice sector, highlights an important issue for the sector: too many New Zealanders still face barriers to getting financial advice. But it also points to something more encouraging. There are real opportunities for firms that are willing to respond with confidence, practical thinking, and the right support.
Some of the biggest opportunities the report points to are:
- More confidence in applying the principles-based regime.
- Advice that is better sized to the client’s actual needs.
- Technology-enabled and hybrid advice models, including digital advice and AI.
- Open banking as a way to support more timely and informed advice.
For many firms, the biggest opportunity may simply be greater confidence. The FMA found that some advisers and FAPs are taking conservative approaches to the nature and scope of advice because they are unsure how to apply their obligations in practice. That can lead to broader, heavier advice processes than the client may actually need.
The report also reminds us that the regime is principles-based by design. That means there is room for firms to deliver advice in ways that are flexible, proportionate, and better matched to different consumers, circumstances, and channels.
The report also highlights the opportunities in technology-enabled and hybrid advice models. Digital advice, innovation, and AI all have the potential to improve efficiency, reduce administrative pressure, support advisers, and make some services easier to deliver at scale. Open banking is another part of that picture, with the potential to support more timely and informed advice through better access to current financial information.
These opportunities are real, but they may not happen on their own. For some businesses, the next step may be reviewing whether advice processes are broader than they need to be. For others, it may be about strengthening governance, building more confidence in right-sized advice, or exploring digital tools or AI in a safe and workable way.
Strategi supports businesses across these areas, including compliance, governance, CPD, policy development, and practical support with AI, from policy development through to implementation and testing. If your business is considering how to respond, now is a good time to get in touch.