Do You Need a Financial Advisor?

A good financial adviser provides genuine value for: complex situations (business owners, divorce, inheritance, retirement planning), optimising superannuation and tax, structuring investments, insurance needs analysis, and estate planning. For straightforward situations (building a savings habit, investing in index funds), good free resources (moneysmart.gov.au) are often sufficient.

Types of Financial Advisers

  • Fee-for-service advisers: Charge a flat fee or hourly rate. Recommendations are not influenced by commissions. The most trustworthy model for unbiased advice.
  • Commission-based (legacy model): Earn commissions from product sales. Largely phased out following the Royal Commission into Banking but still exists for insurance products. Be aware of potential conflicts of interest.
  • Robo-advisers: Automated platforms (Stockspot, Raiz) that manage diversified portfolios with minimal human input. Lower cost, suitable for straightforward investment needs.

How to Find and Evaluate an Adviser

  1. 1

    Verify their licence on ASIC’s register

    Go to moneysmart.gov.au/financial-advice/financial-advisers-register. Search by name or business. Confirm the adviser is currently licensed, has no bans or restrictions, and check their qualifications. Never engage an unlicensed person.

  2. 2

    Ask about their fee structure upfront

    Before any detailed discussion, ask: How do you charge? (Fee-for-service, percentage of assets, commissions?) What is the typical cost for someone in my situation? Are you required to disclose commissions? Get the full cost in writing in the Financial Services Guide (FSG) — they are legally required to provide this.

  3. 3

    Check qualifications

    From 1 January 2019, all new financial advisers must hold a bachelor degree or higher in relevant fields. The Certified Financial Planner (CFP) designation from the FPA is a recognised mark of competence. Ask how long they have been practicing and in what areas they specialise.

  4. 4

    Initial consultation

    Most advisers offer a free initial meeting. Come with your financial situation summarised: income, assets, debts, superannuation balance, insurance, and goals. Assess whether they listen and understand your situation rather than immediately selling solutions.

  5. 5

    Get a Statement of Advice (SOA)

    Any personal advice must be provided in a written Statement of Advice. Review it carefully before acting. It should explain the reasoning behind each recommendation and disclose any conflicts of interest.

Free alternativesASIC’s moneysmart.gov.au has excellent free financial calculators and guides. National Debt Helpline (1800 007 007) provides free financial counselling. Super funds often provide free basic advice to members about their super.

Frequently Asked Questions

Fee-for-service advisers typically charge $250–500 per hour, or $2,000–5,000 for a comprehensive financial plan. Ongoing advice (annual review, regular check-ins) is often 0.5–1% of your portfolio annually. These costs have risen significantly since the Royal Commission. For smaller portfolios, the cost of ongoing advice may outweigh the benefit — a one-off plan with no ongoing fee arrangement may be more appropriate.
In Australia, “financial adviser” and “financial planner” are often used interchangeably, and both refer to licensed professionals providing personal financial advice. “Financial planner” is an older industry term; “financial adviser” is now the standard legal term used in regulation. Both must hold an AFSL or be an authorised representative of one. Be wary of titles like “financial consultant” or “wealth manager” which are not regulated terms.