Choosing a financial adviser that suits you and your circumstances requires a bit of time and research. 

In the last 12 months, Australians have searched online more than 250,000 times for information relating to “financial advice” and in that period there have been more than 800,000 page views of Moneysmart’s financial-advice information.

Right now, most people are dealing with changes in their finances. Millions of Australians have had their income affected by the coronavirus pandemic, and the changes in the markets will have prompted many to consider how they engage with investing, including through superannuation. 

Financial advisers provide advice tailored to your personal situation or goals. It can include: 

• Simple, single-issue advice – Help with one financial issue, for example, how much to contribute to your super, or what to do if you inherit shares.
• Comprehensive financial advice – Help to develop a financial plan to reach your financial goals. This covers things like savings, investments, insurance, super and retirement planning.

Not everyone will necessarily need financial advice when making financial decisions. If your goal is to create a savings buffer or to better manage your superannuation, there may be other ways or services to understand how to achieve your goal. 

If you are looking for help in managing your money day-to-day, paying off debt, starting to invest or planning for retirement, moneysmart.gov.au has free resources and information that can help.

If your financial goals are more complex, you are facing significant life changes, or if you are looking for advice on managing your investment portfolio, the right financial adviser could help you plan for the future.

What to look for in choosing a financial adviser

It is useful to meet with a number of advisers so you can make an informed choice. Financial advisers do not usually charge you for the first meeting. Like making any big decision, don’t rush in – take your time, consider your options and work out who will best help you achieve your goals. 

An adviser should take the time to discuss what's important to you, assess your current situation and ask about your goals before making any recommendations. Look for someone who understands what you want, what can be achieved and who takes the time needed to fully understand your risk tolerance. 

Nine questions to ask 

Meeting an adviser for the first time is a great chance to ask about his or her background. Not all financial advisers offer the same services. Sometimes people are looking for an adviser who can offer expertise in a specific area. Experience and qualifications are important, as is the adviser’s communication style. You need to have confidence in the adviser so you fully understand what decisions are being made about your money. 

It’s a good idea to take a list of questions to your first meeting and ask about: 

1. Qualifications, main client base, and specialty areas.
2. Commissions or incentives received from financial products, and how products recommended to you will be chosen.
3. What fees you will pay, how often and what you'll get in return.
4. How your money will be managed, including how your investments will be monitored.
5. How you will be consulted on decisions.
6. How often you will meet, what information you will receive, and how often.
7. Who will look after your account when the consultant is away.
8. How your complaints will be dealt with.
9. How to end your agreement with the consultant (including any penalties or notice periods).

How to know if the adviser is a good fit for you

Always check ASIC’s Financial Advisers Register before signing on with anyone. You can search people who provide personal advice on investments, superannuation and life insurance. 

Use this register to find out where a financial adviser has worked, his or her qualifications, training, memberships of professional bodies and what products he or she can advise on.

Understanding the type of service you will receive

The best way to find out what an adviser offers to ask for a copy of his or her Financial Services Guide (FSG). This lists the services offered, how they are charged, who owns the company, links to product providers and the adviser’s AFS licence number. 

If you agree to go ahead, your adviser will prepare a financial plan for you. This is called a Statement of Advice (SOA). When you get it, it is important to ask for an explanation of anything you don't understand. You should always feel comfortable with your adviser and the advice.

Make sure your SOA accurately reflects your personal situation and financial goals. The strategy recommended should consider your planned timeframe and the risk levels you are comfortable with. It should also go through how your investments will be managed, how financial products fit into the plan and the pros and cons of switching investments. Your SOA needs to clearly outline all the fees you’ll pay. 

If you have decided to pay an ongoing advice fee, your adviser should review your financial situation and meet with you at least once a year. Here, you can discuss any changes to your goals, situation or finances, how you’re tracking, and any adjustments to your plan. 

Protect your money

It is important that you protect yourself and your money. Put a time limit on any authority you give to buy and sell investments on your behalf, and make sure all correspondence about your investments is sent to you, not just your adviser. 

Regularly check transactions if you have an investment account or use an investment platform. Never sign a blank document or agree to something you don’t understand and don’t give your adviser power of attorney.

If you are unhappy with financial advice you have received or fees you have paid, there are steps you can take, including lodging a complaint with the Australian Financial Complaints Authority (AFCA).