New Financial Advice Code Signals A New Era Of Professionalism

Financial Advice New Zealand welcomes the approval of the revised Financial Advice Code by Minister Simpson, effective 1 November 2025. This marks a defining moment in the evolution of our profession—one that recognises the growing maturity of financial advice in Aotearoa and sets a clear trajectory for its future.

“This is a pragmatic and future-focused update to the Code,” said Nick Hakes, CEO of Financial Advice New Zealand. “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. We would like to thank the Code Committee for their collaborative and direct engagement with the advice profession in revising the Code”

The revised Code updates the nine principle-based standards that elevate expectations around ethical conduct, client care, and technical competence. But it’s the shift in Code Standard 9—from “maintain” to “continually develop” competence, knowledge, and skill—that signals a deeper cultural shift.

“This subtle yet powerful change places lifelong learning at the heart of professional advice,” said Hakes. “It’s not just about meeting minimum standards—it’s about embracing a mindset of continuous growth and relevance.”

Acknowledging the Role of Professional Bodies

For the first time, the Code explicitly recognises the role of professional bodies in delivering CPD learning activities. This is a significant acknowledgement of the infrastructure that professional bodies, like Financial Advice New Zealand have built to support adviser excellence.

“The Code Committee has rightly acknowledged that professional bodies are central to the delivery of meaningful CPD,” Hakes said. “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.”

From 1 November, financial advisers must annually plan and complete learning activities that ensure they are continually developing. Financial Advice Providers must also demonstrate systems and expertise to support this growth.

“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.”

Strengthening Suitability Through Informed Consent

Financial Advice New Zealand supports the revisions to Code Standard 3, which reinforce the critical link between the suitability of advice and informed client consent—key pillars of consumer confidence. The updated standard empowers advisers to self-determine the particular competence and skill required for the advice being provided, recognising that suitability must be tailored to each client’s unique needs and circumstances. In some client scenarios, delivering advice that meets the revised standard may require capability beyond the minimum standards set out in Part 2 of the Code. These revisions reflect the evolving nature of financial advice and the increasing complexity of consumer decision-making. They also affirm that informed consent is only meaningful when clients can trust that their adviser has the expertise to act in their best interests. Section 431Q of the Financial Markets Conduct Act reinforces this by requiring Financial Advice Providers to take all reasonable steps to ensure compliance with the Code—embedding a culture of accountability and professionalism that underpins public trust in the advice profession.

Building the Modern Adviser

Financial Advice New Zealand is embedding new knowledge domains into its professional development framework—drawing from disciplines such as health, education, psychology, ethics, and communication. These build upon the technical foundations of Level 5 as a barrier to entry and reflect what clients value most: empathy, clarity, and trust.

“The future of adviser education must be interdisciplinary,” said Hakes. “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.”

In alignment with global standards such as those set by the Financial Planning Standards Board, Financial Advice New Zealand already embeds mentoring, supervision, and peer learning into its professional designations. These elements are not just informal practices—they are formalised components of our professional education pathways, reinforcing the principle that advice excellence is cultivated through shared experience, reflective practice, and community accountability.

The revised Code sets the floor. It’s now up to us—as a profession—to raise the ceiling.

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