She told the Institute of Financial Advisers in Auckland that it was estimated that 10% to 40% of new advisers stayed in the role long-term.

A US study had shown just 16% lasted four years or more.

The FMA would like to build up the number of AFAs in particular, to cater for the growing KiwiSaver advice need.

Cain said AMP had done a survey between 2007 and 2011, talking to advisers about their reasons for leaving the industry.

The top reasons were a lack of mentoring, fewer leads than promised or expected, more evening work than anticipated, a difference of opinion on selling methods, too much paperwork or a partner who did not understand the demands of the industry.

Australian research had shown a lack of career progression, the search for better compensation or frustration with a lack of recognition were also reasons to leave, Cain said.

She said advisers hiring juniors into their practises were not articulating career progression options in a way they could understand. She said new advisers needed to be offered tangible benefits as they reached set milestones, such as an increasing shareholding.

She said communication must be provided on a continuous basis, and expectations that were created during the recruitment process needed to be delivered upon.

Cain said New Zealand advisers faced a struggle to hire juniors into the firm. Salespeople were the third-hardest job type to recruit, she said.

Just 34% of recruiters were successful in New Zealand, she said, compared to 46% globally.

But she said hiring rather than planning to sell the business at retirement was a good way for advisers to retain a level of control over the business they had built up.