If you want to invest, get a mortgage or insurance, or plan for your long-term future, you may benefit from getting financial advice.
Financial advice can help you identify what you need, what’s right for you, and make sure you’re aware of the risks of certain investments or different types of insurance protection. This is all about helping to set yourself up for the future.
Many people seek financial advice when they’re approaching a new stage in life, such as buying a home, starting a family or nearing retirement. Financial advisers can help you make good decisions on what is right for you.
When you might like to see a financial adviser
FMA Investor Capability Manager Gillian Boyes talks about some of the times in your life where it might be a good idea to seek financial advice.
Financial advice is regulated by the FMA
Financial advice is regulated by the FMA. Those providing financial advice are required to be licensed by the FMA as a Financial Advice Provider or operate under a Financial Service Provider licence issued by the FMA.It’s our job to ensure that they are following rules, including putting your interests first. Read more about how the FMA regulates financial advice.
Financial Advice Providers can recommend or provide opinions on financial products such as KiwiSaver, mortgages, insurance, shares, or cash investments. This is different from just describing how financial products work, which isn’t financial advice.
Some advisers might be able to give advice on a wide range of financial products, while others may advise on certain products only – such as mortgages or insurance.
Financial Advice Providers can include:
Personal financial planners and investment advisers
Mortgage advisers (sometimes referred to as mortgage brokers)
Staff at insurers and banks who provide financial advice
Financial advice can also be provided digitally. Digital or 'robo-advice' is automated advice generated by a computer program using algorithms, based on the information you provide. Only a few providers currently offer digital advice in NZ but it’s an area that’s growing internationally.
A Financial Advice Provider must have their own licence or be covered by a company that has one.
All licensed Financial Advice Providers must comply with new duties that ensure they:
Are qualified and competent to offer advice
Put your interests first
Properly explain what kind of advice they’re able to give