A Financial Markets Authority review of New Zealanders’ access to advice has found “significant opportunity” for improvement.

The regulator split the review into two volumes, to cover adviser and consumer findings separately.

A survey of 1000 consumers found 28% had used a financial adviser in the past 12 months, and use of advisers increased steadily with income.

About 17% sought advice on life insurance; 9% motor cover; 8% home and contents; and 7% income protection products.

About 35% of consumers had not received advice on any products listed in the survey, the FMA says.

“Receiving advice on general insurance products was uncommon.”

Affordability was cited by 31% of respondents as a barrier to engaging a financial adviser, and 26% said they did not know where to start.

The review also found life insurance product providers expect advisers to provide ongoing service to their clients.

“Financial advice plays a vital role in helping people make informed decisions about their financial futures,” FMA CEO Samantha Barrass said. “Our review shows there is significant opportunity to expand access to advice so more New Zealanders can benefit from it.”

The FMA says it will engage with advice providers and the wider sector to “find practical ways to improve accessibility and ensure regulation supports innovation and good consumer outcomes”.