Financial Advice NZ’s view that approval of the revised Financial Advice Code marks a defining moment in the evolution of the profession attracted much reader interest this week…
Financial Advice New Zealand says approval of the revised Financial Advice Code by Minister Scott Simpson marks a defining moment in the evolution of the profession by recognising the growing maturity of financial advice in Aotearoa and sets a clear trajectory for its future.
The revised code is effective from 1 November 2025 and Nick Hakes, CEO of Financial Advice NZ, sees this as a pragmatic and future-focused update (also see: Proposed Amendments Announced for Code of Professional Conduct).
“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.”
He thanked the Code Committee for its collaborative and direct engagement with the advice profession in revising the Code.
Financial Advice NZ says the revised Code updates the nine principle-based standards that elevate expectations around ethical conduct, client care, and technical competence.
“But it’s the shift in Code Standard 9—from “maintain” to “continually develop” competence, knowledge, and skill—that signals a deeper cultural shift.”
Hakes says this “…subtle yet powerful change places lifelong learning at the heart of professional advice. It’s not just about meeting minimum standards — it’s about embracing a mindset of continuous growth and relevance.”
Acknowledging the role of professional bodies
Financial Advice NZ says that for the first time, the Code explicitly recognises the role of professional bodies in delivering CPD learning activities, seeing this as a significant acknowledgement of the infrastructure that professional bodies have built to support adviser excellence.
…it underscores our belief that quality advice is a humanitarian endeavour and adviser education should embrace both formal and informal learning…
Hakes says 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.”
From 1 November, financial advisers must annually plan and complete learning activities that ensure they are continually developing. FAPs must also demonstrate systems and expertise to support this growth.
Suitability of advice and informed client consent
The organisation also supports the revisions to Code Standard 3, which “reinforce the critical link between the suitability of advice and informed client consent—key pillars of consumer confidence.”
… the updated standard empowers advisers to self-determine the particular competence and skill required for the advice being provided…
It says the updated standard empowers advisers to self-determine the particular competence and skill required for the advice being provided, recognising that suitability must be tailored to each client’s unique needs and circumstances.
“In some client scenarios, delivering advice that meets the revised standard may require capability beyond the minimum standards set out in Part 2 of the Code. These revisions reflect the evolving nature of financial advice and the increasing complexity of consumer decision-making.
“They also affirm that informed consent is only meaningful when clients can trust that their adviser has the expertise to act in their best interests. Section 431Q of the Financial Markets Conduct Act reinforces this by requiring FAPs to take all reasonable steps to ensure compliance with the Code—embedding a culture of accountability and professionalism that underpins public trust in the advice profession.”
Building the modern adviser
Financial Advice NZ says it’s embedding new knowledge domains into its professional development framework—drawing from disciplines such as health, education, psychology, ethics and communication.
“These build upon the technical foundations of Level 5 as a barrier to entry and reflect what clients value most: empathy, clarity, and trust,” it notes.
Hakes says the future of adviser education must be interdisciplinary. “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 organisation adds that the revised Code “…sets the floor. It’s now up to us—as a profession— to raise the ceiling.”
Click here to see the Code of Professional Conduct for Financial Advice Services marked-up to show the precise changes, particularly page 11 which outlines the changes in CPD requirements.