How to Check If Your Adviser Considered All Your Options

Alternate Products Must Be Considered

Under the best interests duty (s961B), your financial adviser is required to consider alternative products and strategies before making a recommendation. This does not mean they must analyse every product on the market, but they should compare a reasonable range of options and explain why the recommended one is best for you. This is known as the "investigate alternatives" step in the safe harbour process.

What Your SOA Should Show

Your Statement of Advice should clearly document what alternatives were considered and why they were not chosen. For example, if your adviser recommends a particular super fund, the SOA should mention other funds that were reviewed and explain why the recommended fund is a better fit for your needs. If the SOA simply states the recommendation without showing any comparison, this may be a compliance gap.

Replacement Product Analysis

If your adviser recommends switching from one product to another — for example, moving your super from one fund to another or replacing an insurance policy — they must conduct a replacement product analysis. This compares the costs, features, benefits, and risks of both products. The analysis should be included in or attached to your SOA. If it is missing, the advice may not be compliant.

What to Do If Alternatives Weren't Considered

If your SOA does not show evidence that alternatives were considered, start by asking your adviser to explain their reasoning. They may be able to provide additional information. If you are not satisfied, you can escalate to their licensee or obtain an independent compliance check on your SOA to identify whether the advice meets regulatory standards.

What the Law Requires

Under section 961B(2)(d) of the Corporations Act, advisers must consider a range of products and strategies when providing personal advice. This is step 6 of the best interests duty. The adviser must identify alternatives that could meet your objectives and explain why the recommended option is preferred.

The requirement applies to the type of strategy (e.g., which super fund, which insurance policy, which investment approach) and the specific product. A compliant SOA will include a product comparison table or a detailed rationale showing what was considered.

What to Look For in Your SOA

Your SOA should clearly show that alternatives were considered. Look for: a section discussing alternative products or strategies, a comparison of features, costs, and benefits, an explanation of why the recommended option was selected, and evidence that the alternatives were genuinely available to you.

If the SOA simply states "alternatives were considered" without details, this may not satisfy the legal requirement. The document should show which specific alternatives were evaluated and why they were rejected.

Questions to Ask Your Adviser

If your SOA does not clearly show alternatives were considered, ask: What other products or strategies did you evaluate? How many alternatives did you consider? Why did you recommend this option over the others? Were lower-cost options considered? Were options with different risk levels considered?

A good adviser should be able to answer these questions clearly. If they cannot, it may indicate that alternatives were not properly considered.

Frequently Asked Questions

How many alternatives must be considered?
There is no set number. The requirement is to consider a "range" appropriate to the advice. For simple advice, 3-5 alternatives may be sufficient. For complex advice, more may be needed.

What if no other product meets my needs?
If only one product is suitable, the SOA should explain this clearly, showing why alternatives were not appropriate. Simply stating "no alternatives exist" without analysis is not sufficient.

Can I request my adviser to consider specific alternatives?
Yes. If you have specific products or strategies in mind, ask your adviser to include them in the analysis. The adviser should consider your suggestions as part of the advice process.

Does the requirement apply to ongoing advice?
Yes. Whenever your adviser recommends a change to your strategy or products, they must consider alternatives. Each recommendation should be justified against available options.