New Zealand Financial Markets Authority launches thematic review of artificial intelligence in financial advice

The New Zealand Financial Markets Authority has launched an exploratory thematic review of how artificial intelligence is developed, supplied, adopted and overseen across the financial advice sector. The fact-finding exercise will assess current and emerging uses, potential benefits and risks, and legal, operational and regulatory questions. It is not a formal compliance review or enforcement initiative. The review covers client-facing and advice-influencing uses of AI, including tools affecting advice quality, suitability, disclosure, record-keeping and consumer outcomes. It will examine governance, human oversight, testing and monitoring, accountability, transparency, regulatory boundaries and third-party arrangements. The authority is seeking input through four targeted surveys for advice providers and advisers, technology providers, legal advisers, and industry and consumer stakeholders, with responses due by Sept. 4, 2026. The authority may conduct follow-up interviews, workshops or meetings. Depending on the findings, it may publish aggregated observations, engage the industry on practices and risks, or use the evidence to inform guidance, supervisory priorities or future policy work.