How to Choose a Financial Adviser in New Zealand: A Checklist

The checklist

1. Check the register. Search the adviser’s name or FSP number on the Financial Service Providers Register. It is free. Anyone giving financial advice to the public in New Zealand must be on it.
2. Ask how they are paid. Fee, commission or both? Who pays, and how much in dollars? Read fee-only versus commission advice for what the answer means.
3. Get the scope and fee in writing first. You should know what advice you will get and what it costs before any advice is given.
4. Ask to see their written advice. A good adviser can show you an example of a Statement of Advice. Here is MoneyPlan’s full sample, for a fictional household.
5. Check what they can advise on. Some advisers only cover one provider’s products, or only insurance, or only investments. Their disclosure statement must tell you.
6. Confirm the dispute resolution scheme. Every adviser must belong to an independent scheme, free for you to use if something goes wrong.
7. Notice how they start. A good first meeting is mostly questions about your life and goals, not a product presentation.

Red flags

• Promises of guaranteed returns, or pressure to decide on the spot.
• Reluctance to say how they are paid, or to put it in writing.
• A recommendation before they understand your full situation.
• No written advice, only a verbal recommendation and a form to sign.

Questions to ask in the first meeting

• What exactly will I receive, and when?
• How are you paid for this advice, and by whom?
• What happens after the plan is delivered? Is there ongoing support or an ongoing fee?
• What would make you recommend that I do nothing?
• Who else will be involved, such as brokers or accountants, and are you paid by them?

There is a longer version of this list in five questions to ask before you take any financial advice.

How MoneyPlan answers these

• Register: Luis Silva, FSP1009370.
• Payment: fee-only. A flat, published fee, with no commission or referral payments from anyone.
• In writing: scope and fee are agreed before any advice, and every review ends in a written Statement of Advice.
• Scope: personal financial planning, cash flow, savings and investments, KiwiSaver, personal insurance needs and retirement. Luis does not hold an insurance licence, so cover is applied for directly or through a licensed broker partner.
• Disputes: the Financial Dispute Resolution Service (FDRS), membership FM6843.
• First step: a free 30-minute discovery session, with no obligation.

The full detail is in the disclosure statement.