The Act has been under review for the past 18 months and the Ministry of Business, Innovation and Employment's recommendations for its new look have been revealed today.

They are expected to form the basis for a bill later in the year.

The most significant change for advisers is that all existing designations will be removed. Instead, there will be financial advisers, advice firms and their agents.

Everyone offering financial advice will have to abide by a code of conduct that will cover competency and conduct requirements. All will have to put their clients' interests first and disclosure expectations will be uniform and simplified.

That will mean significant change for people who are currently operating as RFAs or in a QFE.

But for people who are currently AFAs, there will not be a lot of change - although their firms will now have to be licensed by the FMA.

However, things could be set to get a bit easier in some regards.

The system of adviser business statements (ABS) - which are required to be maintained but do not have to be regularly submitted - is up for review and likely to change.

MBIE said it was likely that costs on AFAs would be reduced.

"There also appears to be missed opportunities for efficiencies. AFAs working for a QFE are effectively regulated twice – by the FMA via individual licensing and by the QFE through their ABS and licensing process. Further, there is limited ability for advisers working in the same firm to consolidate their compliance activities. For example, AFAs working in an adviser firm need to be individually authorised by the FMA and produce an individual ABS. There is limited ability for an adviser firm (whether comprising three advisers or one hundred) to leverage economies of scale in its compliance activities," it said.

"QFEs are approved at the firm level with an upfront fee of $4,886, while AFAs are required to be individually authorised, with an upfront fee of $1145 per adviser. This means that a small-medium-sized advisory firm with ten advisers is currently required to spend almost $11,500 in direct fees compared to large QFE firms with potentially hundreds of advisers. The scale of this disparity means that AFAs are imposed with disproportionate direct compliance costs."

Commerce Minister Paul Goldsmith told Good Returns that the load should be made lighter for people who were already authorised. "For some of the current AFAs, it will definitely reduce the cost of compliance."