The financial advice industry in New Zealand is licensed and regulated — but navigating it without knowledge is expensive. Many New Zealanders pay for advice they could have done themselves. Others avoid advice when they genuinely need it. Here’s how to tell the difference.
NZ financial advisers must be licensed under the Financial Markets Conduct Act. A qualified Financial Adviser (FA) charges $250–400/hour or an annual retainer of $2,000–8,000. You need one for: retirement planning with $500k+ in assets, business sale, inheritance, divorce financial settlement, or complex insurance structures. For basic KiwiSaver fund choice, simple investing, and budgeting — you can do it yourself using Sorted.org.nz and resources like this site.
NZ Financial Adviser Licensing
Since March 2021, all New Zealand financial advisers providing personalised financial advice must hold a Financial Adviser (FA) licence under the Financial Markets Conduct Act 2013 (FMCA). This replaced the old Registered Financial Adviser (RFA) / Authorised Financial Adviser (AFA) two-tier system.
What This Means for You
| Type | What they can do | Cost structure |
|---|---|---|
| Licensed Financial Adviser (FA) | Personalised advice on investments, insurance, mortgages, retirement, KiwiSaver | Hourly, retainer, or commission |
| Mortgage Adviser (licensed) | Mortgage/lending advice | Commission from lender or fee |
| Insurance Adviser (licensed) | Life, income protection, health insurance advice | Commission from insurer |
Class services (general financial guidance, not personalised to you): provided by banks, KiwiSaver providers, and websites like Sorted.org.nz — these are not “advice” in the licensed sense and are free.
Check a licence: Search the Financial Service Providers Register at fsp.register.govt.nz before engaging any adviser.
How Financial Advisers Charge
Fee-Only (Hourly or Flat Fee)
The adviser charges you directly with no commissions from product providers. The most transparent model.
| Fee structure | Typical NZ cost |
|---|---|
| Hourly rate | $250–400/hour |
| Initial plan (comprehensive) | $2,000–5,000 |
| Annual retainer | $2,000–8,000/year |
| Statement of Advice (one-off document) | $1,500–3,000 |
Commission-Based
The adviser receives a commission from the product provider (insurer, KiwiSaver, mortgage lender) when you take a product. Your direct cost appears zero.
The catch: Commission-based advisers have an inherent conflict of interest — they may recommend higher-premium insurance products or specific KiwiSaver providers that pay better commissions.
NZ regulation: Advisers must disclose all commissions and conflicts of interest. Ask: “How are you remunerated for this recommendation?”
Hybrid
A combination — some fee, some commission. Common for mortgage and insurance advisers.
When a Financial Adviser Adds Clear Value
Retirement Planning with Significant Assets
If you have $300,000+ in combined savings (KiwiSaver, investments, other) and are within 10–15 years of retirement, a qualified adviser can:
- Model your retirement income across multiple scenarios
- Optimise drawdown sequencing (which accounts to draw from first)
- Ensure KiwiSaver fund type is appropriate for your timeline
- Review estate planning alignment
The advice fee pays for itself many times over with proper asset allocation and tax efficiency.
Business Sale
Selling a business involves significant tax implications (capital gains vs income, timing of distribution, rollover provisions). An adviser working with your accountant is valuable here.
Inheritance of Significant Assets
A lump-sum inheritance of $100,000+ arriving into a previously simple financial situation creates investment decision complexity. A one-off adviser consultation ($1,500–3,000) can provide a clear action plan rather than leaving you guessing.
Divorce / Relationship Property Settlement
Financial advisers (often working with a solicitor) can model the long-term impact of different settlement structures on retirement and investment outcomes.
Complex Insurance Needs
Life insurance, income protection, and trauma cover interact with each other and with KiwiSaver/super. An insurance-specialist adviser maps the right structure. This is typically commission-paid — ensure they’re comparing options genuinely, not just recommending the highest-commission product.
When You Don’t Need a Financial Adviser
Many NZers can manage these situations themselves:
| Situation | Self-service resource |
|---|---|
| Choosing a KiwiSaver fund type | Sorted.org.nz KiwiSaver fund finder |
| Basic investment allocation (index funds) | InvestNow, Kernel, Sharesies — with research |
| Budgeting and cash flow | PocketSmith, this site, CFFC resources |
| Deciding how much emergency fund to hold | Emergency Fund Guide |
| Understanding your mortgage options | Compare rates at interest.co.nz; consider a mortgage broker for complex applications |
| Basic insurance check | Sorted.org.nz insurance resources |
How to Find a Qualified Financial Adviser
FANZ (Financial Advice New Zealand)
financialadvice.nz — Directory of licensed advisers. Filter by specialty and region.
Sorted Adviser Search
sorted.org.nz/financial-advisers — Free adviser search tool from the CFFC.
Questions to Ask Before Engaging
- “Are you licensed? What is your FSP number?” (Verify on the register)
- “How are you remunerated for your recommendations?”
- “What is your specialty area?”
- “Do you provide a written Statement of Advice?”
- “What are your total fees for my situation?”
Red Flags to Watch For
- Guaranteed returns — no legitimate adviser promises a specific return
- Commission without disclosure — legally required to disclose; refusal is a red flag
- Pressure to act quickly — good financial decisions benefit from reflection
- Products you don’t understand — if you can’t explain it, don’t sign it
- No written advice — a legitimate adviser provides a written Statement of Advice