My Adviser Kept Recommending the Same Products to Everyone — Here's How I Found Out

The Situation

James, 55, had been with his financial adviser for three years. He recommended a specific super fund, a particular insurance policy, and an investment platform. James thought nothing of it until he attended a social event and discovered that two of his colleagues saw the same adviser and had been recommended the exact same products — despite having completely different financial situations, ages, and goals.

Why This Is a Concern

While it is not illegal for an adviser to recommend the same product to multiple clients, a pattern of recommending the same products without showing tailored reasoning may indicate the adviser is not properly considering individual circumstances. Under the best interests duty (s961B) and the appropriate advice duty (s961G), each recommendation must be based on your personal situation — not a standard template.

What James Checked

James reviewed his SOA using AdviserCheck. The report showed that while the document included his personal details, the reasoning section for the super fund recommendation appeared generic — it used broad statements about low fees and strong returns that could apply to anyone. The compliance report flagged this as a concern, noting that tailored reasoning specific to his goals was missing.

What James Did Next

James asked his adviser to explain specifically why the recommended super fund was the best option for his personal goals — retirement at 62 with a focus on capital preservation. The adviser was able to provide additional context, and James felt more confident. However, he also decided to get a second opinion from an independent adviser to compare recommendations.

Why Personalised Advice Matters Under the Law

Under section 961B of the Corporations Act, your financial adviser must act in your best interests when providing personal advice. This means they must consider your individual objectives, financial situation, and needs — not simply recommend products they are familiar with or that pay them higher commissions. A key requirement is that the adviser conducts a reasonable investigation into the financial products available and compares them against your personal circumstances.

If your adviser recommends the same product to multiple clients with different financial situations, this may indicate a failure to meet the best interests duty. ASIC has taken enforcement action against advisers who engaged in "one-size-fits-all" advice, particularly where clients were recommended high-risk or unsuitable products that did not match their risk tolerance or financial goals.

What to Look for in Your SOA

A well-prepared Statement of Advice should demonstrate that the recommendations are tailored to you. Look for specific references to your personal goals (e.g., "you want to retire at age 62 with $60,000 per year in income"), your financial situation (e.g., your income, assets, liabilities, and risk tolerance), and the alternatives that were considered and rejected with clear reasoning.

Red flags include: generic language that could apply to anyone, missing or vague references to your personal circumstances, no discussion of alternatives considered, recommendations that seem to align more with the adviser's preferences than your needs, and a lack of specific dollar figures or timelines tied to your situation. If the SOA reads like a template with your name filled in, ask your adviser to explain how it is personalised to you.

What You Can Do About Generic Advice

If you suspect your adviser is providing generic rather than personalised advice, start by raising your concerns directly. Ask specific questions: "How did you determine that this product is better for me than the alternatives?" and "Can you show me how this recommendation reflects my personal goals and risk tolerance?" A good adviser will be able to provide clear, document-based answers.

If you are not satisfied with the response, you can escalate to the adviser's licensee (the Australian Financial Services Licence holder) or lodge a complaint with AFCA. ASIC also accepts reports about potentially inappropriate advice through its online reporting portal. If the advice has caused financial loss, you may have grounds for compensation through the adviser's professional indemnity insurance.

Frequently Asked Questions

Is it illegal for an adviser to recommend the same product to everyone?
It is not automatically illegal, but it may breach the best interests duty if the product is not suitable for each client's individual circumstances. The key question is whether the adviser has considered each client's personal situation and can demonstrate that the product is appropriate for them.

How common is generic financial advice?
ASIC's enforcement actions and reports suggest that unsuitable or generic advice has been a persistent issue in the financial advice industry. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (2018-2019) highlighted numerous cases of advisers recommending inappropriate products to clients without proper personalisation.

What if my adviser says the product is suitable for most people?
The best interests duty requires suitability for you personally, not for "most people." If your adviser cannot explain why the product is specifically right for your situation, goals, and risk profile, the advice may not meet the legal standard. Ask for written reasoning tied to your personal circumstances.

Can I get compensation for generic advice that caused losses?
If you received personal advice that was not in your best interests and suffered financial loss as a result, you may be entitled to compensation. The first step is to complain to the adviser's licensee. If they do not resolve your complaint within 30 days, you can escalate to AFCA (Australian Financial Complaints Authority), which handles disputes up to $1 million.