Country _ Name
Financial advisory and broking services including robo advisory and auto-trading
FinTechs belonging to this category offer advisory and broking services for investments usually via an internet platform.

Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment. 

Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.

Apart from that some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investor with his decision-making. 

There are also FinTech-advertising-services which advertise various financial services or products.


Attitude of the country towards modern financial advisory and broking services

New Zealand rolled out a new financial adviser regime in 2019 with its implementation being completed in 2021. Older legislation was repealed and now the provision of financial advisory services is captured under the FMCA and its partner legislation.

The new framework provides a fresh code of conduct and a requirement for providers to hold a Financial Advice Provider Licence.

There are no general reservations as to financial advice outside of the industry. However, licence holders need to consider the risks associated with engaging others to provide services on their behalf with reliance on their licence, which they are entitled to do.

Legal affairs

Obligations and requirements to provide financial advisory and broking services, or ancillary services described above

Financial advisers must register as Financial Service Providers in accordance with the FSPA with the associated costs as outlined at 1.a. ii. above.

A Financial Advice Provider Licence must be obtained. Licence application fees range from $703.80 to $1,060.30 depending on the relevant class relating to the application. An assessment is required, and additional fees may be imposed subject to the length of the assessment.

An annual confirmation will be required and the then current applicable FMA levy will be payable.

Additional comments regarding the legal situation for financial advisory and broking services, or adjacent services or what FinTech’s must be aware of in this business area

Providers should consider whether to apply for a licence individually or through a company. A company could be a way of ringfencing their liability both in relation to the licence and other commercial risks. Individuals using a company to hold the licence can contract with the company and provide services with reliance on the company’s licence.

Economic conditions

Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area

There are over 3000 financial advice businesses registered on the Financial Service Providers Register (FSPR). Seventy-per-cent of those advisers provide advice on personal risk insurance while 48% advise on Kiwisaver and 37% provide advice on mortgage products and consumer credit contracts.

The market in New Zealand in dominated by small businesses with 82% of financial advice providers being a small business with fewer than 10 advisers.

Additional comments regarding the economic situation for financial advisory and broking services as well as adjacent services or what FinTech’s must be aware of in this business area




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