FMA has outlined the main trends and themes for the financial advice sector, and where more focus is needed.
The Financial Markets Authority (FMA) has published its second annual report analysing regulatory returns submitted by licensed financial advice providers, providing insight into the trends and themes for the financial advice sector and where regulatory focus is needed.
The report covers 1 July 2023 to 30 June 2024 and 1 July 2024 to 30 June 2025. It shows that licensed financial advice providers increased 10 percent year-on-year (1,410 to 1,553) and the number of financial advisers increased by almost nine percent to 9,197. Half of all providers engage just one adviser, while three providers each have more than 500 advisers.
Digital advice activity grew dramatically over the past year with the estimated number of clients receiving digital advice increasing by 90 percent, from around 86,500 in 2024 to more than 164,800 in 2025. The number of financial advice providers offering advice through digital facilities also increased by 21 percent, reflecting greater use of digital channels to reach and serve clients.
Clare Bolingford, Executive Director Licensing and Supervision, said the data shows both an evolving market and emerging areas of focus.
“Regulatory returns are essential for the FMA, so we can focus our regulatory effort where the risks and opportunities are greatest. We also want financial advice providers to benefit from the summary of these returns, so they can drive improvement into their own business. The continued growth in adviser numbers, alongside the rapid increase in the uptake of digital advice, shows how the sector is evolving.”
There were fewer reported complaints to financial advice providers than the previous year. While more complaints were escalated to dispute resolution schemes, the number of complaints upheld fell significantly and almost all complaints were resolved within three months.
“Complaints give providers critical insights into where things can go wrong, what can be improved, and how firms can strengthen their systems to ensure better consumer outcomes,” said Bolingford.
When compiling the report, the FMA identified issues with inaccurate and incomplete returns submissions from some advice providers.
“Accurate and timely regulatory returns are a regulatory requirement. We depend on high-quality data from these returns to effectively oversee advisers, ensure they meet their obligations, and support fair outcomes for consumers.”
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