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How do I choose a financial adviser?
Financial advisers have the expertise to recommend savings and investment options from a huge range of available products, which can then be tailored to your individual needs and goals.
A qualified financial adviser can provide advice on a range of issues including:
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wealth creation
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retirement
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retrenchment and redundancy
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risk management/risk insurance products
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managed investments
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super
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retirement incomes
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social security
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deposit products
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securities
- Government stocks and bonds
An adviser will work with you to create a financial plan that is tailored to suit your individual needs.
When it comes time to choose your financial adviser, be sure to take into account their experience and qualifications.
The following is a checklist of what to look for in a financial adviser:
- Ensure they’re registered with the Australian Securities and Investments Commission (ASIC) – the national regulator of Australian companies. Ensure the adviser either:
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holds an Australian Financial Services Licence (AFSL) from ASIC; or
- is an authorised representative of an AFSL holder.
Find out more at www.asic.gov.au
- Are they a member of their national body such as the Financial Planning Association of Australia (FPA) or the Association of Financial Advisers (AFA)? These are the national bodies for financial advisers and as such enforce adherence to a strict code of conduct having the authority to investigate complaints and discipline members if required. Find out more at www.fpa.asn.au or www.afa.asn.au
- Is the adviser accredited to provide advice at the level or on the topic you require? Keep in mind that there are a range of qualifications and accreditations within the financial industry. Ask your adviser what qualifications they have and in what areas they’re qualified to provide advice.
- Do not commit to a financial plan until the adviser has provided a clear strategy in writing. A financial adviser is also required to provide you with a copy of their Financial Services Guide. This guide details the adviser’s remuneration, the services that will be provided and procedures for complaint resolution.
- Ensure that you are comfortable with your financial adviser, the proposed plan (known as a Statement of Advice) and the method of payment and remuneration for the adviser now and in the future.
- Your financial plan needs to be an evolving document, fine-tuned regularly to accommodate your changing circumstances and requirements. Your financial adviser should offer ongoing, long-term service and recommend at least yearly reviews.