FAP governance and reporting in focus as second regulatory returns begin
The financial advice industry is entering a pivotal phase, with the second round of Financial Advice Provider (FAP) regulatory returns putting a spotlight on governance and reporting.
All licensed FAPs must submit this return to the Financial Markets Authority (FMA), outlining their business operations, adviser numbers, service types, governance processes, and compliance systems.
Far from being a compliance formality, these functions are increasingly viewed as drivers of sustainable growth, business value, and client trust, according to The Adviser Platform (TAP).
Governance isn’t just good practice – it’s business strategy
Strong governance has evolved into a strategic asset for advice businesses. While meeting the Financial Markets Authority’s (FMA) requirements is a baseline, embedding governance into daily operations offers a competitive advantage.
“Embracing governance is really embracing good business practice,” said Ryan Edwards (pictured), managing director at TAP. “A well-run business is better placed to help more Kiwi families in a professional way, whilst also making the business itself more valuable and sustainable.”
Governance structures make adviser performance visible, instill client confidence, and bring clarity to business operations – positioning firms to adapt, scale, and lead.
The reporting reality: Challenges for advisers
According to TAP, last year’s first regulatory return cycle proved more difficult than many advisers anticipated. Obligations spanning adviser competencies, business structure, and product offerings exposed weaknesses in systems and record keeping.
“Time after time, we see instances of advisers being caught out by poor record keeping and the resulting poor reporting,” Edwards said. “Having this sort of information at your fingertips, in your system should be the bare minimum expectation for business owners, not solely for the FMA, but for themselves as they strive to run a business as a business.”
Many firms faced a scramble to consolidate records, justify advice processes retrospectively, and clarify roles internally. The experience reinforced that compliance reporting cannot be left to the last minute.
TAP’s Role: Enabling effortless oversight
The Adviser Platform (TAP) is helping advisers turn reporting into an embedded operational process. Its tools include real-time reporting, automated compliance workflows, and governance dashboards aligned with FMA expectations.
“Our system has been designed to do one job – help advisers run a FAP business across all advice sectors, with the system central to the business’s daily operations, as opposed to a dumping ground for documents,” Edwards said.
Governance as a growth lever
For forward-thinking firms, governance has become a differentiator. Embedding reporting into operations makes it easier to attract professional talent, negotiate with providers, and grow business value.
“Governance shows you care about running your business. It identifies opportunities for improvement, reflection and finding efficiencies,” Edwards said.
“A company with the right systems and support in place can deliver good quality advice to more people more often – rather than getting stuck behind a desk manually trying to juggle things that can and should be done at the click of a button.”
Maintaining robust data systems also produces strategic insights, enabling advisers to refine service models, target professional development, and deliver more tailored client advice.
Looking ahead: Turning obligation into opportunity
FMA has signalled it will scrutinise not just reported data, but the systems that generate it. TAP is encouraging advisers to take a proactive approach with centralised records, templated workflows, and audit-ready reporting.
“All businesses are ultimately data businesses,” Edwards said. “It’s the depth and breadth of that data that drives both underlying value and opportunities. Advisers need to constantly ask themselves ‘is my current set up going to help, or hinder me in reaching my five-year goal?’ For many, the answer is not a confident ‘yes’.”
TAP’s message is clear: advisers who treat governance as an integral part of their business DNA – rather than a checklist – will be best positioned to thrive.
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