Stop selling product and start advising, FMA warns

"The entire financial services industry needs to stop thinking about what the customer will pay for, and start thinking about what they actually need and what will actually will benefit them," she told delegates at the IFA conference in Auckland this week.

"Iin retail financial services there is a big difference between what people can be pursuaded they want and what they actually need."

She told advisers that the new regulatory environmnent will challenge all of you to do more than just the bare minimum; and if you do that you will be successful in the new regulatory environment."

Campbell said people who comply with the FMA and "play it straight", will see the good face of the regulator. Those who don't will see something quite different.