New Code enforces higher adviser standards and lifelong learning
Financial Advice New Zealand has welcomed the approval of the revised Financial Advice Code, which takes effect on Nov. 1.
The updated code marks what the association calls a defining moment in the evolution of the advice profession in New Zealand.
The minister of commerce and consumer affairs approved the new version of the code on Aug. 21, following consultation on amendments designed to clarify competence, knowledge and skill requirements for financial advisers.
The code committee has also released supporting material, including marked-up changes, a summary of submissions, and an impact analysis, with the official code to be published in both PDF and HTML booklet formats.
“This is a pragmatic and future-focused update to the code,” said Nick Hakes (pictured), 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.”
Lifelong learning at the core
The code maintains nine principle-based standards that elevate expectations around ethics, client care, and technical competence. But a key change to Code Standard 9 shifts the requirement from “maintain” to “continually develop” competence, knowledge, and skill.
“This subtle yet powerful change places lifelong learning at the heart of professional advice,” Hakes said. “It’s not just about meeting minimum standards – it’s about embracing a mindset of continuous growth and relevance.”
From November, advisers must plan and complete learning activities each year that support ongoing development, while financial advice providers must demonstrate they have systems in place to foster that 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.”
Recognition of professional bodies
For the first time, the code explicitly recognises the role of professional bodies in delivering CPD. Hakes said this acknowledgment underscores the importance of adviser education going beyond technical training.
“The code committee has rightly acknowledged that professional bodies are central to the delivery of meaningful CPD,” he 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.”
Suitability and informed consent
The association also supports changes to Code Standard 3, which link suitability of advice more directly with informed client consent. The update empowers advisers to determine the level of competence and skill required for each client’s circumstances—recognising that in some cases, capability beyond minimum standards may be needed.
These revisions also affirm that informed consent is only meaningful when clients trust that their adviser has the expertise to act in their best interests. Section 431Q of the Financial Markets Conduct Act reinforces this expectation, requiring financial advice providers to take reasonable steps to ensure Code compliance.
Building the modern adviser
Financial Advice New Zealand is aligning its professional development framework with global standards, embedding new knowledge domains from health, education, psychology, ethics, and communication.
“The future of adviser education must be interdisciplinary,” Hakes said. “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.”
The association already incorporates mentoring, supervision, and peer learning into its professional designations, ensuring advice excellence is developed through shared experience and accountability.
As Hakes concluded, the revised code provides the foundation.
“The revised code sets the floor. It’s now up to us – as a profession – to raise the ceiling,” he said.
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