When it formed in 2018, Financial Advice NZ (FANZ) marked yet another attempt to unify the various tribes in an historically factional industry.
And despite some scepticism at the time, the coalition of investment, insurance and mortgage advisers has held over a transformative seven-year period for the sector.
FANZ chief, Nick Hakes, said the three industry bodies backing the 2018 merger – the Professional Advisers Association, the Institute of Financial Advice and the NZ Financial Advisers Association – showed “real business leadership in bringing the tribes together”.
“Where we come from is important,” Hakes said. “There are different cultures, language and history but advisers are united by a passion for helping New Zealanders make better financial decisions.”
He said the roughly 1,500-member FANZ is the largest professional body representing financial advisers in the country, giving it an influential seat at the table in regulatory and government discussions.
Factional splits along advice specialities haven’t completely disappeared, of course, with an Australian mortgage body spawning a NZ arm while two local insurance-focused groups formed a new commercial-focused association last year.
However, Hakes said FANZ had “built a solid foundation as the authentic voice of financial advisers in NZ”.
During his one-year tenure alone, FANZ has been deeply involved in a number of key industry talks including the Commerce Commission banking inquiry, the Code Committee review, leading a new ‘value of financial advice’ initiative along with the Retirement Commission, engagement with the Financial Markets Authority (FMA) as well as a recent appointment to the insurance sub-committee of the Council of Financial Regulators.
Ultimately, he said the industry organisation wants to use its influence to align the regulatory framework with the day-to-day process of providing financial advice.
“We need to connect the conversations with government and regulators with what happens at the adviser-client level,” Hakes said.
“It’s about shaping the professional future we want and not just accepting the one that’s given.”
But the industry body’s focus is also widening again beyond national borders including a “re-engagement” with the Financial Planning Standards Board (FPSB) in a move that will see its current chief (and former head of the Financial Planning Association of Australia), Dante De Gori, make a headline appearance at the FANZ conference this April.
Highlighting the closer international ties, NZ has just been confirmed to host the FPSB Asia-Pacific regional forum in 2026.
While keeping in touch with global best practice remains important, Hakes said the NZ advice industry is better-placed than most to “flourish” against a backdrop of largely sensible regulations and huge latent demand.
Just three years after FANZ launched, the government establish a new entity-licensing advice regime under the Financial Services Legislation Amendment Act.
He said the sector has settled well under the financial advice provider (FAP) rules, which came into full force in 2023, and was poised for growth.
“It’s an enviable situation in NZ compared to Australia, for example, where multiple government interventions have seen the number of financial advisers there almost halved,” Hakes said.
Following multiple sector reviews, the Australian government is now winding back some restrictions in a bid to make financial advice affordable again.
Hakes, who bears some “battle scars” from a long stint in the advisory sector in Australia, said NZ has avoided the regulatory extremes seen across the Tasman.
“NZ has introduced licensing, educational standards and client best-interests principles without the adversarial process seen in Australia.”
The FANZ chief spent almost 20 years in the Australian financial services industry – first in the National Australia Bank-owned wealth arm, MLC, before moving into industry body territory in general manager roles with the Association of Financial Advisers (AFA).
In 2018 he shifted to Singapore as director market development Asia for US privately owned education firm, Kaplan, to help spread some of the financial services training experience developed in Australia.
His former AFA boss, Richard Klipin – then serving as Financial Services Council NZ chief – encouraged Hakes to consider the FANZ job as a good fit with his industry experience and a chance for the Christchurch-born ex-pat to come home.
“This role ticked a lot of boxes,” he said.
FANZ also, in one way at least, is five years ahead of its Australian counterpart: Hakes old tribe, the AFA, and former rival Financial Planning Association merged only in 2023.