Knowledge gap a challenge for advice sector

Much of the financial advice world still lacks the specialist knowledge required to meet investors’ expectations for advising them on ethical and responsible investment choices, according to the latest survey by Mindful Money and the Responsible Investment Association Australasia.

The report, Voices of Aotearoa: Demand for Ethical Investment in New Zealand 2025, released Monday, shows how financial advisers are playing an increasingly important role in values-based investing, with a 3% year on year increase in investors choosing funds based on their financial adviser’s advice.

In total, 54% have sought advice from their adviser while 10% have had help from their financial planner, but only 12% are seeking advice regularly.

“The reasons for seeking financial advice were cited as needing specialist advice from a professional, taking up a mortgage, putting money aside for children or grandchildren, in response to a life-changing event and for ethical/sustainable options,” says the report.