New Zealand Financial Markets Authority publishes financial advice sector report showing rapid digital advice growth and data quality issues in regulatory returns

The New Zealand Financial Markets Authority has published its second annual analysis of regulatory returns from licensed financial advice providers, highlighting growth in the financial advice sector, a sharp increase in digital advice, and areas needing supervisory attention. Covering the years to 30 June 2024 and 30 June 2025, the report shows the number of licensed providers rose 10 percent year on year from 1,410 to 1,553, while the number of financial advisers increased almost 9 percent to 9,197. Estimated clients receiving digital advice rose about 90 percent from around 86,500 to more than 164,800, and the number of providers offering advice through digital facilities increased 21 percent. The data also shows a highly uneven market structure, with half of all providers using a single adviser and three providers each employing more than 500 advisers. Complaints reported to providers fell from the previous year, although more complaints were escalated to dispute resolution schemes. At the same time, the number of complaints upheld fell significantly and almost all complaints were resolved within three months. In compiling the report, the FMA identified inaccurate and incomplete regulatory returns from some providers and reiterated that accurate and timely submissions are a regulatory requirement because the data is used to oversee advisers and assess whether obligations are being met.