The FMA has published this information on their website for consumers seeking advice. It explains what consumers can expect from all advisers and discusses whether they are retail or wholesale investors and what the difference is.
There are several things we like about this advice. The first is that it clearly prefers the idea that a consumer can get good value out of financial advice. It also suggests personalised advice as the standard service that a consumer should seek. That creates a bright line between what most of us consider to be financial advice and all the other things that are like financial advice, but limited in some way.
Also, topically, it includes this:
Any adviser who recommends you change from one product to another product must:
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Provide a clear and balanced comparison of your existing and new products. They must explain if the new product is suitable and if it has any exclusions or limitations. For example, if you’re changing your life or health insurance, they should tell you if there is any reduction in cover (or no cover) for pre-existing conditions that are covered under your existing insurance. See our life insurance advice page for things to look out for before you change your insurance.
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If they can’t provide a specific comparison (for example, if they’re not qualified to comment on other provider’s products), ask them to explain this. They should also explain the types of risks involved with changing products so you can investigate this further yourself or get a different opinion if you wish.