Advice checklist

You can get investment advice from a range of providers including financial planners, insurance companies, sharebrokers, banks and financial advisers.

The first thing to check is whether the adviser is licensed to provide you with what you need.

• For investments like KiwiSaver, managed funds, shares, or bonds you need to talk to an Authorised Financial Adviser (AFA).
• Advisers who work for a company which is a Qualifying Financial Entity (QFE) e.g. a bank can also provide investment advice, but only on products provided by their QFE.
• If you are looking for advice on very simple investments such as bank term deposits, you can talk to a Registered Financial Adviser (RFA).

Shop around to find an adviser you feel confident about. The adviser should take time to understand your financial situation and your investment goals, and recommend investments that suit you. 

What an adviser must tell you

Authorised Financial Advisers must give you a disclosure statement telling you the range of products they offer, the fees they charge and what commissions or other incentives they receive.

Your adviser should give you this statement before they offer you advice and before you pay them any money. You should not have to ask for it.

Qualifying Financial Entity advisers providing advice on investment products also have to tell you how they will be paid.

For more information about disclosure statements visit the Financial Markets Authority website.

How to find out more

You can find the names of Authorised Financial Advisers in your area, and a list of Qualifying Financial Entities, on the Financial Markets Authority website.

You can find out more about an Registered Financial Adviser or Authorised Financial Adviser on the public register at www.fspr.govt.nz – including the financial services they can provide.

Qualifying Financial Entity advisers don’t have to be listed individually on the register, but the company they work for must be there.

If an adviser is not on the register when they should be, then don’t deal with them.

How to complain

If you can’t sort out a problem directly with your financial adviser you can complain to their dispute resolution scheme (at no cost to you).

If you feel your adviser is not behaving professionally or not putting your interests first, you can also complain directly to the Financial Markets Authority.