How to Check If Your Financial Adviser Is Meeting Their Legal Obligations

Best Interests Duty (s961B)

Under section 961B of the Corporations Act, your adviser must act in your best interests when providing personal advice. This means they must consider your goals, financial situation, and needs — not just recommend products that benefit them. Check your SOA for evidence that alternatives were considered and that the reasoning is tailored to you.

Appropriate Advice (s961G)

The appropriate advice duty requires that the advice given is suitable for your circumstances. If the recommendations do not align with your stated goals or seem generic, they may not meet this standard. Your SOA should clearly connect each recommendation to your personal situation.

Fee Disclosure and Transparency

Your adviser must clearly disclose all fees, commissions, and costs associated with the advice and any recommended products. This includes upfront fees, ongoing fees, and any trailing commissions. If the fee information is unclear, hidden, or missing, this may be a breach of their obligations.

Conflicts of Interest

Under FOFA reforms, advisers are banned from receiving conflicted remuneration. Your adviser must disclose any conflicts of interest and explain how they are managed. If your SOA does not address conflicts or downplays them, this is a concern.

Licensing and Qualifications

Your adviser must hold appropriate qualifications and be authorised by an Australian Financial Services Licence (AFSL) holder. You can check their status on the ASIC Register to verify they are licensed to provide the advice they have given you.

Checking Your Adviser's Licence

The first step is verifying your adviser's licence using ASIC's Financial Advisers Register. Search by name or AFSL number. The register shows: the adviser's name and contact details, their AFSL and authorised representative status, qualifications and experience, and any disciplinary history or banning orders.

If your adviser is not on the register or has a disciplinary history, this is a significant concern. Unlicensed advice is illegal. Report it to ASIC immediately.

Checking Your Advice Documents

Your SOA should meet all legal requirements under the Corporations Act and RG 175. Check that it: clearly states whether the advice is personal or general advice, includes your objectives, financial situation, and needs, sets out the recommendations in clear language, discloses all fees in dollar amounts (not just percentages), includes appropriate risk warnings, and explains your right to complain through IDR and AFCA processes.

Also check that the SOA is dated and properly signed, includes the adviser's name, their licensee's name, and the AFSL number under which the advice is provided. If the adviser has recommended switching products, the SOA must include a replacement product analysis showing why the switch is in your best interests. If any of these elements are missing or unclear, ask your adviser for an updated or corrected document before acting on the recommendations.

Checking Ongoing Compliance

If you have an ongoing advice arrangement, confirm that: you receive annual fee disclosure statements within 60 days of each anniversary, the statements accurately show fees charged and services provided, you receive annual renewal notices, and you must actively opt in to continue the arrangement.

If these documents are not being provided, your adviser may be non-compliant. Raise this with them and confirm they will provide the required documentation going forward.

Frequently Asked Questions

How often should I check the Financial Advisers Register?
At least annually, or before making significant financial decisions based on your adviser's recommendations. The register is updated as disciplinary actions occur.

What if my adviser is not on the register?
They may be providing unlicensed advice, which is illegal. Cease dealing with them immediately and report to ASIC. You may be entitled to compensation.

Can my adviser lose their licence?
Yes. ASIC can suspend or cancel licences for serious or ongoing compliance failures. If your adviser's licence is cancelled, you should be notified and offered alternative arrangements.

What documents should I receive annually?
You should receive: an annual fee disclosure statement, a renewal notice (for ongoing fee arrangements), and an annual review meeting or report. If any are missing, follow up with your adviser.