Major gaps in access to financial advice

A new review by New Zealand’s financial watchdog has revealed significant gaps in access to financial advice, with many Kiwis unsure how to seek help or unable to obtain it at all.

The Financial Markets Authority – Te Mana Tātai Hokohoko (FMA) released findings from its nationwide Access to Financial Advice Review, highlighting both barriers and opportunities within the sector.

The regulator now plans to work closely with advisers and industry groups to improve accessibility and support innovation.

Speaking at the Financial Advice New Zealand Conference in Auckland, FMA chief executive Samantha Barrass said improving access to advice is essential for the country’s long-term financial wellbeing.

“Financial advice plays a vital role in helping people make informed decisions about their financial futures,” Barrass said. “Our review shows there is significant opportunity to expand access so more New Zealanders can benefit.”

The review, conducted between July and December last year, drew on consumer research and extensive consultation with financial advisers, institutions and industry bodies.

It found that just 28 per cent of New Zealanders had accessed financial advice in the past year.

Participation was even lower among people from lower socio-economic backgrounds and some ethnic groups, including Māori and Pasifika communities.

Many respondents reported confusion about what financial advice actually was, how to access it and what it might cost.

The FMA identified a range of structural, cultural and operational barriers across the sector. Advisers themselves often face uncertainty around how much analysis was required for different clients, leading some to take overly cautious approaches that could increase costs and limit access.

Barrass said accessibility challenges were particularly acute for Māori, citing a lack of culturally aligned advice models and tools.

The review also highlighted a growing concern around retirement planning.

Many New Zealanders lack access to advice on how to manage their savings in retirement, leaving uncertainty about how to make funds last.

Despite the challenges, the FMA pointed to innovation as a key opportunity.

Technology-enabled and hybrid advice models – including digital tools and AI-supported processes – could make financial advice more scalable and consistent.

“Technology can automate parts of the process that currently take advisers a lot of time, freeing them up to focus more on the human conversations that consumers value,” Barrass said.