Simon Papa: Access to advice - Is adviser conservatism the issue?

In March 2026 the FMA published its report Access to financial advice in New Zealand – Challenges and opportunities for the financial advice sector, alongside its related consumer research findings.

The report seeks to support improved access to financial advice in New Zealand and is a valuable contribution to that end. However, the report is based on a limited methodology and analysis and therefore, in my view, will not be fully effective. The central issues are that it does not consider key aspects of the market for financial advice services, including sector business models (identified as one of the four key areas for review in the terms of reference for the report), and that it does not provide an economic analysis of the issues the report and consumer research findings identify.

The report highlights an important issue with the Conduct of Financial Institutions (CoFI) law that applies to banks and insurers and that requires them to comply with a “fair conduct principle”. That is, the CoFI law creates the potential for the FMA to influence the supply of financial products and services, not just conduct in relation to such supply, which has traditionally been the FMA’s role. The report indicates that, under CoFI law, banks have obligations to supply financial advice services in some circumstances but provides no real clarity on how the FMA considers that applies in practice.

WHAT FMA FOUND