AFAs must be authorised to offer personalised advice but people in these roles can do so without falling under the scope of the FAA.

The Ministry of Business, Innovation and Employment (MBIE) said the theory was they were already subject to regulatory oversight in their own fields.

Concerns were raised about the fairness of the exemptions in submissions to the FAA review issues paper.

The Institute of Financial Advisers (IFA) said it could see no reason why an accountant or lawyer who went beyond “discuss and consider” situations and made specific recommendations about an investment portfolio or insurances should not be subject to AFAs' requirements.

“All advisers should be held the same standard, irrespective of profession, if some advisers are excluded due to advice incidental to their role this should go both ways or it is unfair, therefore it is impractical to have exclusion. If any advisers, who a client would be reasonable to consider trustworthy, gives advice outside of their area of competence that steps over the boundary of information into suitability they should face a punishment irrespective of profession," it said in its submission.

It also argued that investment property, and advice offered on it by real estate agents, should not be exempt from the FAA.

“There are numerous examples of organisations promoting residential property investment along with real estate agents, property development companies, all offering 'investments' to sell their properties with no evidence of competence to provide that advice.”

IFA president Fred Dodds said the options paper made it clear that MBIE was worried consumers were receiving advice from people without adequate skills or knowledge. “It is disappointing that no reference seems to have been made on the exemptions - particularly the property investment area. In Auckland it’s been fantastic buying in property for the last few years but it’s not always like that. People need to realise it can be volatile.”

He said he was sure it would be raised at upcoming meetings and workshops.

Adviser Murray Weatherston has argued against the exemptions.

But he said he was not surprised that they were set to say. “It's the power of the law and accountants' societies.”

MBIE said it did not have any evidence of consumer harm as a result of the exemptions.