Laws governing financial advisors are to be reviewed to see how effective they are.

The terms of reference for an 18 month review process have been released today.

The Financial Markets Authority says it's an opportunity to identify areas that could work better for consumers and advisers.

Spokesman Liam Mason says the Financial Advisors Act introduced in 2008 has been able to weed out some dodgy financial advisors.

"We have certainly seen some exits from the industry since the standards were put in place.

"There are now minimum bars that need to be met, so yes I think it has."