KiwiSaver advice business setup costs, key steps and timeframes

Starting a KiwiSaver advice business in New Zealand usually takes between 1–3 months depending on factors like FSPR registration, FMA licensing and provider onboarding. One-off setup costs typically range from $3,000–$5,500, with ongoing annual expenses of $6,500–$10,500 for a lean single-adviser setup.

Here’s the breakdown:

Typical one-off setup (approx. $3,000–$5,500 total)

• Company name reservation & incorporation: $148 incl GST

• FSPR registration: $1,048 (= $345 app fee + $13 criminal check + $690 FMA levy)

• FAP full licence (Class 1–2): $703.80–$882.05 incl GST

• Aggregator onboarding: $250-$500

• Domain, website & hosting (first year): $200–$600 ($20–$40 domain + $15–$50/month hosting)

• Email & productivity: $10–$20 per user/month (Outlook or Gmail)

• PI insurance: $2k–$3k per year, varying by cover and history

Typical annual/ongoing (approx. $6,500–$10,500 total)

• Companies Office annual return: $57.20 incl GST

• FSPR annual confirmation: $875 incl GST ($75 confirmation + $460 financial adviser levy + $340 FAP levy)

• Dispute Resolution Scheme: ~$350 per year (varies by scheme)

• CRM/compliance/oversight services: ~$300 + GST per month = $3,600 + GST per year

• Domain, website & hosting (first year): $200–$600 ($20–$40 domain + $15–$50/month hosting)

• PI insurance: $2k–$3k per year

• Email & productivity: $10–$20 per user/month (Outlook or Gmail)

• Other software tools: e-sign, calendar booking, marketing platforms ($30–$100 per month)

Key steps

1. Incorporate your company

2. Register on the FSPR and join a DRS

3. Apply for your FAP full licence (Class 1 or 2)

4. Confirm PI insurance and implement your compliance programme

5. Set up your software stack (CRM, e-sign, secure storage, website, email)

6. Engage KiwiSaver providers directly for onboarding

FAQs

How long does it take to start?
Most KiwiSaver-only setups complete in 1–3 months, depending on FSPR processing, FMA licensing and any provider onboarding. A fair chunk of this is waiting time. FSPR registrations can take 2-3 months alone.

Do I need qualifications?
Yes. Advisers must meet the Code’s knowledge, competence and skill standards. Many meet this via the New Zealand Certificate in Financial Services (Level 5) with the investment strand.

How much can the business earn?
Most KiwiSaver providers that engage with advisers pay a trail commission that varies between 0.2% and 0.5% of the fund balance, with an upfront commission of up to $300 per fund (depending on balance size). Because the balances generally increase over time with contributions and market jumps, this is considered a long term play and value-add to your customers.

Do I need an aggregator?
Not for KiwiSaver access. Many providers work with advisers directly. Consider an affiliation it adds real value in governance, CPD, templates, training and pricing on tools.

What drives costs up or down?
Team size, your CRM/compliance package, website scope, PI cover level, how much you outsource compliance and the number of tools you subscribe to.