In June last year, there were about 1900 AFAs operating in New Zealand.

Over the past 12 months, 91 new advisers have been authorised and 122 have terminated their authorisations. There are now 1842 AFAs.

Terminations include people who have let their FSPR registrations slide or voluntarily removed themselves and terminated their licenses.

No applications have been declined.

Institute of Financial Advisers chief executive Fred Dodds said it was concerning. “There are 2.5 million KiwiSaver clients, who do they talk to?”

He said it had initially been suggested that the number of AFAs might reach 5000 but the highest it had ever got was 1963. “We are a fair way off.”

The IFA has had 56 new members in the past year, a mix of QFE advisers and independents.

Dodds said he had been talking to CPIT about starting a financial planning major for its Bachelor of Business Studies degree. Massey University had been mulling a financial advice degree but has put it on hold until the current regulatory change is finished.

Dodds said a university course might boost numbers because it would make young people consider a career in financial planning.

He said it would also be worth examining where the new AFAs were going to work. “How many have become nominated representatives in banks? It does be the question with the Commission for Financial Capability vision of everyone having a financial plan, who is going to provide that? Someone like Murray Weatherston will have to 13,462 clients and will have to embrace roboadvice.”

IBANZ’s Professional IQ College is also considering starting a four-day course for new AFAs or those wanting to upskill.