AFAs must submit an information return annually, under the new regulatory reporting rules.

The first were due last year and the FMA last week said 1784 of 1901 AFAs had completed them.

FMA’s head of supervision Kirsty Campbell said the FMA had followed up with those who had not filed. “Some people didn’t understand what it was, some moved and some were offshore.

She said there were two AFAs left who were yet to file a return.  “There are a last few cases where action will be taken ASAP. Everyone else is doing it so it’s important to follow up.”

She said it would not be fair to those who completed the returns if the FMA did not pursue those that were still to be filed.

Filing is mandatory and the FMA said enforcement action would be considered in cases of ongoing non-compliance.

Campbell said: "As a last resort there is the potential for a fine but we would issue a formal warning prior to that- which would be a published warning."

Under the Financial Advisers Act, failing to comply with the terms and conditions of authorisation can result in a maximum penalty of $5000.

The survey showed about 11% of the advisers authorised to offer financial advice were not doing so.

Campbell said the questions that would be asked in this year’s information return would likely be similar as last year's, to reduce the burden it placed on advisers.

The 40 questions covered things such as the size of an adviser’s business, the number of clients they dealt with and how they were remunerated, as well as the length of time they had been operating in the industry.

Campbell said the FMA wanted to thank the advisers who had filled out the return.