Financial planning in New Zealand operates under the Financial Markets Conduct Act and requires a licensed Financial Advice Provider (FAP). Every piece of client advice must be documented, compliant, and in the client’s best interests. Against this backdrop, AI offers genuine productivity gains — but with specific obligations that financial advisers must understand before adopting any tools.
Where AI Adds Real Value for Financial Planners
1. Statement of Advice Drafting
Statements of Advice are the cornerstone deliverable of financial planning — and writing them is time-intensive. For investment advice, retirement planning, KiwiSaver recommendations, and insurance needs analysis, the SOA follows a structured format: client situation, goals and objectives, recommendation, rationale, disclosure, and fees.
AI can draft the narrative sections of an SOA significantly faster from your structured notes. You provide the financial data, the recommendation, and the reasoning — AI organises it into clear, professional prose. You review for accuracy, compliance, and suitability before issuing.
Critical note: The FMA requires that advice be in the client’s best interests and based on proper analysis. AI drafts the document — the financial analysis, recommendation, and professional judgment are entirely the adviser’s responsibility. AI-assisted SOAs must meet identical compliance standards as manually produced ones.
2. Client Review Reports and Portfolio Updates
Annual review reports, portfolio performance commentary, and market update letters to clients follow recognisable structures. AI can help draft these communications faster — translating portfolio data and market context into clear client-friendly language. The data inputs and professional interpretation are yours; AI handles the writing.
3. KiwiSaver and Investment Research Summaries
Researching managed funds, KiwiSaver providers, insurance products, and investment platforms involves synthesising significant information. AI can help you summarise product disclosure statements, compare key features across providers, and prepare client-ready research summaries faster — letting you spend more time on the advisory conversation and less on document production.
Always verify: AI may not have current product information, fee structures, or recent regulatory changes. Cross-check any AI-summarised product information against current Provider Disclosure Statements and the provider’s current documentation.
4. Retirement and Financial Modelling Narratives
Financial modelling tools produce the numbers — but explaining the implications to clients requires clear written narrative. AI can help you translate retirement projections, drawdown scenarios, and insurance needs calculations into plain-English explanations that clients actually understand. Better client comprehension leads to better implementation and stronger relationships.
5. Client Education Content
KiwiSaver explainers, retirement savings guides, insurance awareness content, and investment literacy materials can all be drafted with AI. For advisers building a content marketing presence, AI makes producing consistent educational content practical alongside a full client load.
6. Compliance and Policy Documentation
FAP compliance manuals, conflicts of interest registers, internal advice processes, complaint procedures, and AI use policies for your practice can all be drafted more efficiently with AI. For smaller FAPs where the principal adviser is also the compliance manager, this is particularly valuable.
7. Marketing and Client Acquisition
Financial planning is a trust-based business where visibility drives referrals. LinkedIn articles, email newsletters, client seminar invitations, and website copy explaining your approach can all be drafted with AI — building your professional presence without the writing overhead stopping you from doing it consistently.
FMA Compliance and AI — The Key Obligations
The Financial Markets Authority has signalled interest in how AI is used in regulated financial services. The existing conduct obligations under the FMCA apply fully to AI-assisted advice:
- Duty to give suitable advice: The suitability of advice depends on the adviser’s analysis of the client’s situation — AI cannot perform this analysis. AI-assisted SOAs are only compliant if the underlying advice is genuinely suitable for the client.
- Duty to prioritise client interests: This obligation isn’t diluted by AI assistance. If AI drafts a recommendation that isn’t in the client’s best interests, the adviser is still responsible.
- Record-keeping obligations: SOAs and advice records produced with AI assistance must meet the same record-keeping standards as manually produced documents.
- Disclosure obligations: Consider whether your engagement letter or advice process disclosure should mention AI tool use. The FMA may issue specific guidance on this — monitor the FMA website.
Privacy and Client Financial Data
Client financial information — income, assets, liabilities, KiwiSaver balances, insurance holdings, and investment portfolios — is highly sensitive personal data under the NZ Privacy Act 2020. Financial advisers also have confidentiality obligations under their appointment terms and professional standards.
- Never input real client financial data into consumer AI tools (ChatGPT, Claude.ai, Gemini free tier). These tools process data offshore and may use it for training.
- Use anonymised scenarios for drafting — “a 52-year-old with $450K in KiwiSaver, seeking retirement at 65, moderate risk profile” rather than real client details. Add client specifics yourself when finalising in your advice management system.
- Check your financial planning software (Midwinter, XPLAN, Advice Intelligence) for AI features — understand their data processing terms before enabling any AI functionality.
- Enterprise AI agreements with data processing terms may be appropriate for practices regularly using AI in the advice process.
Getting Started
The fastest win: use AI to draft the narrative sections of your next SOA. Take your structured advice notes, the recommendation, and the rationale — strip out the client’s identifying details — and ask AI to draft the recommendation and rationale sections in clear, professional language. Review, add the client-specific numbers and context, verify compliance, and issue. See whether the writing time reduces without the advice quality declining.
For a structured approach to AI across your practice — covering compliant workflows, staff training, and an AI use policy that satisfies your FAP obligations — an AI Assessment provides a practical roadmap. We work with financial advice businesses across New Zealand.
Frequently Asked Questions
Does the FMA allow AI in financial advice?
The FMA hasn’t prohibited AI use in financial advice. The conduct obligations under the FMCA — suitable advice, client’s best interests, proper disclosure — apply regardless of how advice is produced. The FMA has signalled it will issue AI-specific guidance for financial services; monitor the FMA website for updates. In the meantime, apply the highest standard: AI assists production, humans make decisions.
Can AI replace a financial planner?
No. Financial planning requires understanding a client’s complete situation, building a trust-based relationship over time, exercising professional judgment about suitability, and taking licensed responsibility for advice outcomes. These are human functions that AI cannot perform. AI can help with document production and research efficiency — the advice relationship and professional accountability are irreplaceable.
Can I use AI for KiwiSaver recommendations?
AI can help draft the narrative explanation of a KiwiSaver recommendation — why a particular fund type suits the client’s risk profile and retirement timeline. The recommendation itself must be based on your professional analysis of the client’s situation, and the current fund options must be verified against current provider information. AI drafts; you advise.
What should my AI use policy say for a financial planning practice?
At minimum: which AI tools are approved, what client data must never be entered into AI systems, how AI-assisted advice documents must be reviewed before issue, how AI use is documented in the advice file, and what the process is for updating the policy as FMA guidance develops. We can help you draft this as part of an AI Assessment.
