The New Zealand Financial Markets Authority published its 2024 Financial Advice Providers industry snapshot, using 2024 Financial Advice Provider regulatory returns data to give a comprehensive view of the financial advice sector since the new Financial Advice regime took effect in March 2023. The snapshot covers the return period from 1 July 2023 to 30 June 2024 and is intended to inform how the FMA supervises and engages with the sector. Regulatory returns were submitted by 1,410 licensed Financial Advice Providers, comprising 406 Class 1, 948 Class 2 and 56 Class 3 providers. The snapshot records 8,472 financial advisers as at 30 September 2024, compared with 9,300 in 2021; it also notes that 36 providers delivered digital advice to 86,500 retail clients, implying fewer than 3% of licensed providers offered digital advice during the period. Other highlights include over 57,000 advice-driven switches to a different KiwiSaver provider, life and health insurance contracts as the most commonly advised-on products, 55 providers reporting no regulated financial advice activity, and 57.2% of funds under advice falling in brackets above NZD 10 million. Most complaints were reported as resolved within three months, with relatively few escalated to and upheld by the relevant dispute resolution scheme, alongside a reminder to disclose dispute resolution scheme membership as required under the Financial Markets Conduct Regulations 2014. The data also shows most providers outsourced at least one system or process tied to licence obligations, pointing to the operational importance of due diligence and ongoing review of outsourcing arrangements.

Original source View in tracker