Review of access to financial advice for New Zealand: Proposed terms of reference

Update:  July 2025

Based on feedback received during this consultation process, we can confirm the original terms of reference as outlined in the document published in April 2025.

We received around 25 submissions from large industry bodies (representing advisers and product providers such as banks, insurers and fund managers), individual advisers, consumers, and consumer groups. 

Industry feedback has been generally supportive of both the review and our proposed focus areas.

There was some feedback suggesting we look at how other regulatory frameworks, such as the Credit Contracts and Consumer Finance Act (CCCFA) and Conduct of Financial Institutions (CoFI) impact financial advice accessibility.

Although this will not be included in our scope, we will consider other regulatory systems when forming and presenting our observations and insights.

We also heard there is still some uncertainty from advisers on how to meet their obligations when making assumptions or taking into account less- personalised information (e.g. digital or limited scope advice).

Other feedback included:  

• A request for additional guidance around navigating the principles-based regime for limited-scope advice.
• Some financial advice products are simple; views were expressed on how the full spectrum of advice obligations must be carried out for these products, e.g. savings accounts or term deposits. 
• Potential reputational damage from getting things wrong is driving a more conservative approach to advice, which includes limiting service to information only.
• Customers' level of financial literacy means advisers are not always confident they could demonstrate the client understood the advice - a requirement under the Financial Advice Code.
• Customers' lack of awareness of what financial advice is, or how it can help them, often meant they didn’t seek advice at important times in their lives when they could have benefited from it. 

The key focus areas from the proposal remain in scope and will be used to guide the review. 

April 2025

We know there are many positive impacts for consumers who receive good quality financial advice. Therefore, ensuring consumers can access quality financial advice when they need it is crucial.  

To enhance our understanding of the availability of financial advice in New Zealand, including where consumers go to get advice, we are planning a review to identify challenges and opportunities related to access to financial advice.  

To help shape our review, we want to hear from the financial advice industry and other relevant stakeholders, such as organisations that may represent or advocate for consumers and community groups. We’re seeking feedback on the four focus areas set out in the proposed terms of reference document, as well as any other topics or sources of information that may provide insight into the availability of financial advice. 

Read the proposed terms of reference and have your say by 30 May 2025.