Our report on a significant reduction in the number of advisers working with Fidelity Life, following the introduction of full licensing, was our most-read story of the week…

Fidelity Life has reported a drop in the number of advisers working with the firm since the start of full licencing.

A spokesman for the firm says 1,670 advisers, operating under 658 FAP licenses, have distribution agreements with the firm today – a drop of 28% based on its October 2022  figure.

The spokesman says: “It’s been interesting to see the movement in these numbers in the months leading up to the start of full licensing on 17 March.

“For example, 72% of advisers working with Fidelity Life as at the end of October 2022 went on to become either fully licenced themselves, or operate under another FAP, by 17 March 2023.

“In other words, there’s been a 28% decline in the number of advisers with a Fidelity Life distribution agreement since 30 October 2022.”

The spokesman says many advisers have either exited the industry or have surrendered their transitional licence to become an authorised body or a financial adviser operating under another FAP license.

“Our view remains that New Zealand needs more qualified and licensed financial advisers, not fewer,” says the spokesman.

“We’re doing what we can to future proof the advice industry through initiatives like Career connect – our skills and training programme to develop New Zealand’s next generation of financial advisers.”

In a Fidelity Life video released in February (above), Bronwyn Kirwan the firm’s Chief Sales and Service Officer, reflects on adviser numbers saying there is “…not enough to meet the demand for New Zealanders’ advice needs”.

“It would have been better to see a greater percentage of those hitting that licence milestone. But we are where we are…”.