Financial advice is regulated by the FMA. Those providing financial advice are required to be licensed by the FMA as a Financial Advice Provider or operate under a Financial Service Provider licence issued by the FMA.It’s our job to ensure that they are following rules, including putting your interests first.
Financial Advice Providers can recommend or provide opinions on financial products such as KiwiSaver, mortgages, insurance, shares, or cash investments. This is different from just describing how financial products work, which isn’t financial advice.
Some advisers might be able to give advice on a wide range of financial products, while others may advise on certain products only – such as mortgages or insurance.
Advisers must have a licence issued by the FMA or be working for an approved business that has one.
They must also followthe Code of Professional Conductfor Financial Advice Services which outlines the standards of conduct, client care, competence, knowledge, and skill needed to provide financial advice.
They must have the right competence, knowledge and skill and able to provide information of their dealings with customers to the FMA, which collects data, and monitors compliance and outcomes through ongoing supervision.
The FMA monitors advisers and also takes enforcement action when needed. The Ministry of Business, Innovation and Employment and the Companies Office also help with oversight of the financial advice regime and theFinancial Service Providers Register(FSPR).
