The Financial Markets Authority and Reserve Bank have asked bank bosses for details of what they are doing in response to the misconduct brought to light by the Australian inquiry. They this week asked life insurance companies for the same information, including steps being taken to tackle the potential for misconduct. They have until June 22 to provide the details.

Adviser Sonnie Bailey, who worked as a financial services lawyer reviewing adviser files in Australia, said he hoped to see attention turn to adviser groups next.

“I also hope the FMA contacts industry associations and asks whether they pay anything more than lip service to enforcing their codes of conduct.

“It's probably beside the point given that it's winding down, but the IFA's Code of Ethics required members to ‘act in the client’s best interests, above consideration of personal gain’. And the first principle of Financial Advice NZ's Code of Ethics is to ‘place the client's interests first’.

“I haven't given much thought as to whether the FMA has much jurisdiction over Financial Advice NZ etc but to my mind, there shouldn't be anything stopping an effective regulator from engaging with stakeholders in this way.”

He said he would like to see senior people in the industry admitting the Australian experience had led to genuine soul-searching.

“Instead of knee-jerk reactions that ‘everything's fine’ and ‘there's nothing to see here’, actually using this as a prompt to pause and reflect, and see whether there's anything that might need to be changed.

“I don't mean soul-searching as an admission of guilt - just individuals and organisations actually being healthy and well-adjusted in light of new information coming to light. As fiduciaries taking the longer view and thinking this might actually be best for shareholder value, not to mention Kiwi consumers.”

The Financial Markets Authority is not completely ruling it out.

“We’re comfortable that it is appropriate to prioritise our work on banks and life insurers, and at this point we haven’t made any decision as to whether that needs to be expanded in the future,” a spokesman said.

Gavin Austin, of ABC Compliance, and formerly with the FMA, said he was not sure New Zealand adviser groups were big enough to warrant the action. “It’s unlikely but who knows? I don’t know if the FMA has the resources.”