In December 2025, the FMA censured Opes Group for record keeping failures, unmanaged conflicts of interest, and insufficient adviser oversight. No clients were harmed. The regulator enforced anyway, because the gaps “increased the risk of detriment to clients.”

That is the regulatory environment heading into 2026. New Zealand’s financial markets authority is not waiting for client complaints. It is looking at your systems, your records, and your processes, and asking whether they are good enough to prevent harm before it happens.

This article sets out what is being actively monitored for KiwiSaver advice practices, what recent censures reveal about regulatory priorities, and what you can do now to make sure your practice is ready.

The Regulatory Framework for KiwiSaver Advisers

If you give regulated financial advice on KiwiSaver, your obligations come from three sources:

The Financial Markets Conduct Act 2013 (FMC Act), which sets the statutory duties including care, diligence, skill, and client interest priority.
The Code of Professional Conduct for Financial Advice Services, which translates those duties into nine enforceable standards. Version 2 of the Code came into force on 1 November 2025, clarifying competence requirements.
The Standard Conditions attached to your FAP licence, which impose ongoing obligations around record keeping, complaints handling, regulatory returns, outsourcing, business continuity, and cybersecurity.

A common misconception is that the Conduct of Financial Institutions (CoFI) regime applies to financial advisers. It does not. CoFI covers banks, insurers, and non-bank deposit takers. FAPs are governed by the framework above.

What Is Being Focused On in 2026

The inaugural Financial Conduct Report, published in June 2025, sets out sector-by-sector priorities. For financial advice, four areas stand out.

1. Conduct Affecting Vulnerable Consumers

Complaints involving adviser conduct that affects vulnerable people will be prioritised, particularly regarding unsuitable products and unnecessary costs. Recent cases reinforce this. Filcare Services had its licence cancelled for failing to ensure that approximately 1,800 clients, predominantly Filipino migrant workers, understood the implications of switching insurance policies. Go Financial Solutions was censured for similar failures with clients who spoke English as a second language.

If you advise on KiwiSaver, pay particular attention when working with clients who may have limited financial literacy, language barriers, or who are in vulnerable circumstances. The Code Standard 4 obligation to ensure clients understand your advice is not a formality. The regulator is checking whether you actually took reasonable steps, and what evidence you have.

2. Fee and Commission Transparency

Across the sector, the regulator has observed “lack of clarity on commissions and incentives, missing or inconsistent information, and delayed disclosure.” CEO Samantha Barrass stated that “clients need to receive appropriate information about the costs, nature and scope of advice so they can make informed decisions.”

For KiwiSaver advice, this includes being upfront about any fees your practice charges, any commissions from providers, and the cost differences between the fund you are recommending and alternatives the client might consider. Disclosure must happen at the right time, not weeks after advice is given.

3. Advice Accessibility

A comprehensive review of advice accessibility was announced in April 2025, examining barriers to advice provision including regulatory burden, remuneration structures, and digital innovation. A striking statistic: only 36 FAPs, less than 3% of all licensed providers, currently offer digital advice, yet those 36 serve over 86,000 retail clients.

The signal is clear: more New Zealanders should be able to access quality financial advice. Practices that use technology to deliver compliant advice more efficiently are aligned with where the regulator wants the industry to go.

4. Outcomes-Focused Regulation

The regulatory approach has moved from tick-box compliance to what the FMA calls outcomes-focused regulation. The focus is on “end results that regulation is aiming to achieve for consumers.” Having a policy on paper is not enough. The regulator wants evi