The financial advice sector in New Zealand will see new professional standards come into effect from Nov. 1, following the approval of an updated Financial Advice Code.
The changes are designed to reflect the sector’s ongoing development and to provide a clearer framework for both current and future advisers.
Financial Advice New Zealand chief executive Nick Hakes said the revised code is designed to balance the needs of experienced advisers with those entering the profession while reinforcing public confidence in financial advice.
“It strikes the right balance – honouring the expertise of current advisers, establishing a clear pathway for new entrants, and reinforcing public trust in the profession,” he said.
Among the most significant changes is the adjustment to Code Standard 9, which now requires advisers to “continually develop” their skills and knowledge, rather than simply maintaining them.
According to Hakes, this change places a greater emphasis on ongoing professional growth and the need for advisers to remain current in their field.
“This subtle yet powerful change places lifelong learning at the heart of professional advice,” he said. “It’s not just about meeting minimum standards – it’s about embracing a mindset of continuous growth and relevance.”
The updated code also formally recognises the contribution of professional bodies in providing continuing professional development (CPD) opportunities.
Hakes said this recognition supports the idea that professional learning should extend beyond technical skills to include broader competencies relevant to client needs.
“This reinforces our belief that quality advice is more than just technical expertise – it underscores our belief that quality advice is a humanitarian endeavour and adviser education should embrace both formal and informal learning. And it’s our responsibility, as the professional body, to promote learning that reflects the complexity of real lives,” he said.
He added that professional bodies have a responsibility to ensure their members have access to both structured and informal learning experiences.
“Those who belong to a professional body have already made a commitment to higher standards. We want to see that trend continue – with more advisers joining their professional association and engaging in CPD that goes beyond compliance and into capability,” Hakes said.
From November, advisers will be expected to create and follow annual learning plans that support their ongoing development.
Financial advice providers will also need to demonstrate that they have systems in place to facilitate this process.
The revised code also updates requirements around the suitability of advice and the need for informed client consent.
Advisers will have greater responsibility to determine the appropriate level of expertise required for each client’s situation, and in some cases, may need to exceed the minimum standards set out in the code.
These changes are intended to reflect the increasing complexity of financial advice and the importance of tailoring recommendations to individual circumstances.
Section 431Q of the Financial Markets Conduct Act continues to require financial advice providers to ensure compliance with the code, reinforcing the industry’s focus on accountability and professionalism.
Financial Advice New Zealand is expanding its professional development framework to include areas such as health, education, psychology, ethics, and communication.
Hakes said the future of adviser training would be interdisciplinary, bridging technical expertise with skills that foster client trust and understanding.
“We’re building a framework for the profession that bridges the gap between technical skill and human connection – because that’s where real impact lives,” he said.
Mentoring, supervision, and peer learning are now formal parts of the organisation’s education pathways, in line with international standards.
Hakes said the revised code establishes a baseline for the profession, but it is up to advisers and their organisations to set higher standards.
The release of the revised Financial Advice Code comes after the government’s 2025 Growth Budget introduced changes that will directly impact advisers and their clients.
The budget, delivered by Finance Minister Nicola Willis, included adjustments to KiwiSaver contribution rates, eligibility, and government co-contributions, as well as new incentives for business investment.
Financial Advice New Zealand responded to the budget by highlighting the increased value of professional advice in helping clients navigate these changes.
“More people participating and increasing contributions to their KiwiSaver accounts is certainly a step in the right direction, but engaging with a financial adviser is vital for making the best of this savings vehicle; great advice transforms lives,” Hakes said.
