Financial advisers are people who give advice about financial products. They include financial planners, brokers and people working for banks and building societies who provide advice about money and investing.
Advisers hold different types of licences and this affects the kind of advice they can provide. There are different types of financial advisers.
Registered Financial Advisers (RFAs)
Can advise on simpler products like insurance, bank term deposits, and mortgages.
Qualifying Financial Entity advisers (QFE advisers)
Can advise you on the same products as RFAs and investment products like KiwiSaver or managed funds. But they can only advise you on the investment products provided by their company.
Authorised Financial Advisers (AFAs)
Have met minimum qualification requirements and must comply with professional standards. They can advise on more complex investment products and can also offer investment management and investment planning services. Their licence will set out the types of products and services they are authorised to offer.
People who don't have to be licensed advisers
Some people are exempt from the requirements but in a limited way.
Lawyers and chartered accountants who provide you with financial advice don't have to be on the register or meet authorisation requirements provided their advice is given as part of the ordinary business of being a lawyer or accountant. They are covered by other laws and regulatory regimes.
Journalists, lecturers and teachers also have an exemption for advice given in the course of those occupations.
You can see more about who is not covered by the Financial Advisers Act.
Generally speaking, if someone is only giving you information about financial products without any recommendation or opinion to buy or sell the product, then they are not likely to be covered by the Financial Advisers Act. But if they are providing you with advice or providing financial planning services then they are.
If you are not sure, or if you think someone is providing a financial adviser service and they are not licensed, contact the Financial Markets Authority.