Hughes said he was well aware there had been "a very vocal response" to the advert and that his offer to decline the chance to speak had been turned down by IFA chief executive Peter Lee.

He also acknowledged advisers feel unfairly targeted in moves aimed at restoring investor confidence.

Hughes said part of the FMA's role, which he described as being "an economic ambassador for New Zealand," would inevitably mean the watchdog would ruffle feathers and occasionally have to take tough decisions.

He also said that as the new regulation is a "quantum leap" away from what had existed before, the FMA would inevitably take on legal cases to test the law and would not shy away from offending good advisers in pursuit of bad ones.

However, in a more conciliatory tone he said he envisioned the FMA being a partner to the adviser community, saying they both had important roles to play in restoring New Zealanders "shattered" confidence in capital markets.

He congratulated those advisers who had embraced the spirit of the new regulation, and warned non-compliant advisers that it wouldn't just be the FMA watching out for them but fellow advisers and customers.

Compliant advisers can look forward to a "great partnership" with the FMA, and will "take the lead in improving the lot of ordinary New Zealanders."

See what else he had to say to advisers here