The Financial Advice Process in NZ: The 6 Steps From First Meeting to Written Plan

What actually happens when you get financial advice in NZ: scope, fact-find, written recommendation, implementation and review, walked through step by step.

If you have never sat down with an adviser, the process can feel like a black box. It is not. Regulated financial advice in New Zealand follows a fairly standard path, shaped by the FMA's Code of Conduct, and knowing the steps in advance makes the whole thing less daunting. Roughly 1.3 million New Zealanders received regulated financial advice in a recent year ¹, across about 1,300 licensed Financial Advice Providers ², so this is a well-worn road, not a niche one.

This article walks through the financial advice process in NZ from the first conversation to the written plan and beyond, so you know what to expect and what good practice looks like.

TL;DR: Financial advice in NZ usually runs through six stages: setting the scope, a fact-find, analysis, a written recommendation, implementation, then ongoing review. From first meeting to written plan typically takes about 4 to 8 weeks ⁹. Every adviser must meet the FMA Code of Conduct and disclose fees, commissions and conflicts at set points ³⁴.

What actually happens when you start working with a financial adviser in NZ?

The first meeting is usually a no-obligation conversation, not a sales pitch. It is where the adviser works out whether they can help you, and where you work out whether you want to work with them.

Before or at this point, the adviser must give you certain information in writing. Under the disclosure rules, an adviser has to tell you who they are, the kinds of advice they can give, how they are paid (including any commissions), and any conflicts of interest, at set stages of the relationship ⁴. That is not optional politeness; it is a legal requirement, and it lets you compare advisers on a like-for-like basis.

A few things to look for at this stage:

• Are they licensed? Every person giving regulated advice must operate under a licensed Financial Advice Provider and meet the Code of Professional Conduct ²³.
• How are they paid? Commission, fees, or a mix, and is it disclosed clearly and early ⁴?
• What can they actually advise on? Some firms cover insurance only; others add KiwiSaver and investments.

If you want help deciding whether now is the right time to engage one at all, our guide on when to see a financial adviser in NZ covers the common triggers.

What is the scope of service and why does the adviser set it first?

The scope of service defines what the advice will and will not cover. It is the single most important step to get right, because everything that follows is built on it.

An adviser cannot sensibly advise on "everything" in one sitting, and trying to would be expensive and unfocused. So early on, you and the adviser agree the boundaries: perhaps "review your KiwiSaver fund choice and contribution rate" or "assess your life and income protection cover," rather than your entire financial life at once. The Code of Conduct expects advice to be suitable for the client given the nature and scope of what has been agreed ³.

Setting scope first protects you in two ways. It keeps the cost and time proportionate to the decision, and it makes clear what was deliberately left out, so nothing important falls through a gap by accident. If your situation later calls for advice outside the agreed scope, a good adviser will say so and propose widening it, rather than quietly straying.

At Smiths Financial we advise on personal risk insurance, health insurance, general insurance, KiwiSaver and managed funds. We do not advise on mortgages, tax structuring, estate planning or direct shares and crypto; for those, we will point you to an appropriately authorised professional. This is general information only.

What does the fact-find (discovery) stage cover?

The fact-find, sometimes called discovery, is where the adviser gathers the detail needed to give suitable advice. It is the most time-consuming stage for a reason: the quality of the advice depends entirely on the quality of the information underneath it.

A thorough fact-find usually covers:

• Your circumstances: income, expenses, debts (including the mortgage), dependants and existing assets.
• Existing cover and accounts: current insurance policies, KiwiSaver provider, fund type and contribution rate, and your PIR (Prescribed Investor Rate, the tax rate on your KiwiSaver and managed-fund earnings).
• Your goals and timeframe: retirement, a first home, protecting a family, or simply paying less in fees.
• Your attitude to risk: how much short-term ups and downs would bother you, which matters a great deal for fund choice.

Being open at this stage matters, particularly for insurance. Whether a claim is paid later depends partly on what you disclosed when you applied, so leaving things out can cause problems down the track. The adviser should explain this duty clearly.

What is a Statement of Advice or written recommendation, and what should it contain?

Once the adviser has analysed your information against the market, they produce a written recommendation. In New Zealand this is often called a Statement of Advice, a record of advice, or simply a written recommendation; the label matters less than the substance.

A good written recommendation should set out, in plain language:

• What you asked for (the agreed scope) and the goals it addresses.
• What the adviser is recommending and, importantly, why, with the reasoning shown.
• The benefits and the risks, costs, exclusions and trade-offs of the recommendation, side by side.
• How the adviser is paid for this, including any commission ⁴.
• What was considered and not recommended, and what sits outside scope.

The analysis behind it draws on real options. For KiwiSaver, that means comparing providers such as Simplicity, Booster, Milford, Fisher Funds, Generate and Kernel on fees, fund type and fit, rather than defaulting to one name. For insurance, it means comparing insurers like Partners Life, AIA, Chubb Life, Fidelity Life and Asteron Life on wordings, not just price.

Returns on KiwiSaver and managed funds are not guaranteed; the value of investments can go down as well as up, and past performance is not a reliable indicator of future performance. Any projections in a plan are illustrations based on stated assumptions, not predictions, and your actual results will differ.

How does implementation work once you agree to the plan?

A written recommendation only helps if it gets actioned. Implementation is where the agreed steps are put in place: applications submitted, a KiwiSaver fund switch or provider transfer arranged, insurance underwritten, or a PIR corrected.

Two parts of this stage are worth understanding. First, insurance is underwritten, the insurer assesses your health and circumstances before agreeing to cover, and may apply loadings, exclusions or stand-down periods. The cover you end up with may differ from the cover first proposed, and the adviser should walk you through any changes. Second, nothing is binding until you say yes. You are agreeing to a recommendation, not being committed to anything during the earlier stages.

This is also where an adviser earns their keep on the admin: chasing the underwriter, coordinating the transfer, and making sure the paperwork is right so a claim is not jeopardised later by a small error. Whether any future claim is paid still depends on the policy's terms, conditions, exclusions, stand-down periods and your disclosure, so always read the policy wording or product disclosure statement.

What happens in the ongoing review stage?

Advice is not a one-off. Your circumstances change, and so do the rules. Most advised clients have a review at least annually ⁹, and that cadence is where a lot of the long-term value sits.

Recent KiwiSaver changes show why. The annual Government contribution was halved to a maximum of $260.72 per year from 1 July 2025, down from $521.43 ⁶. The default minimum employee and employer contribution rate, 3% of gross pay as at mid-2025, is legislated to rise to 3.5% from 1 April 2026 and 4% from 1 April 2028 ⁷. NZ Super rates also shift each April; from 1 April 2025 a single person living alone receives $1,043.24 a fortnight after tax (code M), and a qualifying couple $1,604.74 combined ⁸. A plan written before these changes needs revisiting, and that is exactly what a review is for.

KiwiSaver is a long-term savings scheme, and Government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Figures are correct as at 2 August 2025; check current rules at ird.govt.nz, kiwisaver.govt.nz and sorted.org.nz. Our walkthrough of what happens in a KiwiSaver review in NZ goes deeper on that specific check.

How long does the whole process take and what does it cost?

For comprehensive advice, the path from first meeting to written recommendation commonly takes about 4 to 8 weeks, with the fact-find, research and preparation of the written advice being the main time drivers ⁹. A narrow, single-issue piece of advice can be much faster; a complex multi-product plan can take longer, particularly where insurance underwriting is involved.

On cost: we are generally paid by commission from the insurer or provider when you take out a policy or product through us, and this does not change the premium or price you pay. Some arrangements may instead involve a fee, which we agree with you first. We manage any conflicts of interest in line with our duty to prioritise your interests, and full details are in our disclosure. The point of the disclosure rules is that you should never be guessing how your adviser is paid ⁴.

Here is how the six stages map out.

The six stages of a financial advice engagement in NZ

Source: Smiths Financial, mapped to the FMA Code of Professional Conduct for Financial Advice Services ³.

Advisers operate inside a real accountability framework. Breach a duty under the FMC Act and the Financial Advice Disciplinary Committee can impose a fine of up to $10,000 (plus suspension or deregistration), while civil penalties through the courts can reach up to $1 million for an individual ⁵. That backstop is part of why the process is as structured as it is.

How is the NZ advice process different from the Australian SoA model people read about online?

A lot of online material about "Statements of Advice" is written for Australia, and the term can mislead Kiwis. In Australia, a Statement of Advice is a specific, prescribed document required under their Corporations Act, with its own formatting and content rules.

In New Zealand the substance is similar, suitable advice, recorded and explained, but the framework is different. Our advisers work under the FMA's Code of Professional Conduct and the FMC Act disclosure regulations ³⁴, not the Australian rules. There is no single mandated "SoA" template here; the obligation is that advice is suitable and properly disclosed, and a written record supports that. So if you read an Australian guide describing exactly what an SoA must contain, treat it as a rough analogy, not the NZ rulebook.

If you are weighing up advisers, our guide on how to choose a financial adviser in NZ sets out what to ask, and the cost of not getting financial advice in NZ looks at the other side of the ledger.

Frequently asked questions

Do I have to pay for the first meeting with a financial adviser? Usually not. Many advisers, including us, offer a free, no-obligation first conversation to work out whether they can help and how they are paid. You should receive clear disclosure of fees and commissions before any advice is given ⁴.

What is the difference between scope of service and a Statement of Advice? The scope of service is agreed early and defines what the advice will and will not cover. The Statement of Advice (or written recommendation) comes later and sets out the actual recommendation, the reasons for it, and the associated risks and costs. One frames the work; the other records the result.

How long does it take to get a financial plan in NZ? For comprehensive advice, commonly about 4 to 8 weeks from first meeting to written recommendation, with the fact-find, research and drafting taking most of the time ⁹. Simple single-issue advice can be quicker; cases involving insurance underwriting can take longer.

Is a Statement of Advice in NZ the same as in Australia? Not exactly. The idea, suitable advice recorded in writing, is similar, but NZ advisers work under the FMA Code of Conduct and FMC Act disclosure rules rather than the Australian Corporations Act, and there is no single mandated SoA template here ³⁴.

Are financial advisers in NZ regulated? Yes. Anyone giving regulated financial advice must operate under a licensed Financial Advice Provider and meet the Code of Professional Conduct, covering ethical behaviour, client care and competence ²³. Breaches can attract fines and, through the courts, civil penalties of up to $1 million for an individual ⁵.

What happens at the ongoing review stage? The adviser revisits your plan, typically at least once a year, to check it still fits your circumstances and the current rules. With KiwiSaver settings such as the Government contribution and default contribution rates having changed recently ⁶⁷, reviews are where a plan is kept up to date.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. Smiths Financial is a trading name of Craig Smith Business Services Ltd (FSP712931), which holds a Class 2 financial advice provider licence issued by the Financial Markets Authority to provide financial advice on personal risk insurance, health insurance, general insurance, KiwiSaver and managed funds. Our advisers, Henry Smith (Financial Adviser) and Craig Smith (Principal Adviser), are bound by the Code of Professional Conduct for Financial Advice Services and the duty to give priority to clients' interests. Craig Smith Business Services Ltd is a member of the Financial Dispute Resolution Service (FDRS), a free and independent dispute resolution scheme. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 2 August 2025.