The number of licensed financial advice providers increased 10% in the year to June 30, 2025, while the number of financial advisers increased almost 9% to a total of 9,197, according to the Financial Markets Authority’s latest annual report.
The FMA’s second annual report, which analyses regulatory returns submitted by licensed FAPs, found the number of providers had increased from 1,410 to 1,553 and that half of all providers engage just one adviser, while three providers each have more than 500 advisers.
…The data shows both an evolving market and emerging areas of focus…
The authority notes that the report, which covers 1 July 2023 to 30 June 2024; and 1 July 2024 to 30 June 2025, provides insight into the trends and themes for the financial advice sector and where regulatory focus is needed.
The report also shows that digital advice activity “grew dramatically” over the past year with the estimated number of clients receiving digital advice increasing by 90%, from around 86,500 in 2024 to more than 164,800 in 2025.
The FMA says the number of financial advice providers offering advice through digital facilities also increased by 21% percent, reflecting greater use of digital channels to reach and serve clients.
Clare Bolingford, Executive Director Licensing and Supervision, says the data shows both an evolving market and emerging areas of focus.
“Regulatory returns are essential for the FMA, so we can focus our regulatory effort where the risks and opportunities are greatest. We also want financial advice providers to benefit from the summary of these returns, so they can drive improvement into their own business.”
She says the continued growth in adviser numbers, alongside the rapid increase in the uptake of digital advice, shows how the sector is evolving.
The FMA notes there were fewer reported complaints to FAPs than the previous year. “While more complaints were escalated to dispute resolution schemes, the number of complaints upheld fell significantly and almost all complaints were resolved within three months.”
Age of advisers
The FMA’s regulatory returns dashboard shows the average age of advisers is 47 and that:
- 52% of advisers are aged between 31 and 50
- The number of advisers under the age of 30 increased by 38% from 2024
- 15% of advisers are over 60 years old
Distribution of advisers across FAP Licences
The full report also noted that the majority of FAPs engage 19 or fewer advisers and says the most common business structure was single-adviser FAPs (across Class 1 and 2); 776 (50%) engage one adviser up from 618 in 2024.
Another 62 FAPs engage 20 or more advisers, and within this group three FAPs engage more than 500 advisers each (1,933 advisers collectively).
Most Advised Products
Life insurance contracts remain the most advised product, the report shows, provided by 824 FAPs, a three percent increase in comparison to 798 FAPs in 2024.
Trauma, income protection, term life and total and permanent disability are the most frequently advised life insurance products.
In turn 800 FAPs provide advice on health insurance contracts, a 3% increase from the 2024 returns.
The FMA report notes this data represents products at the FAP level and that not all Authorised Bodies under a licence (or advisers engaged) will advice on all products offered by the FAP.
The authority also notes that when compiling the report, it identified issues with inaccurate and incomplete returns submissions from some advice providers.
“Accurate and timely regulatory returns are a regulatory requirement. We depend on high‑quality data from these returns to effectively oversee advisers, ensure they meet their obligations, and support fair outcomes for consumers,” says Bolingford.
Click here for the regulatory returns dashboard.