How to Choose a Financial Adviser — A Consumer's Checklist

Check They Are Licensed

Every financial adviser in Australia must be authorised by an Australian Financial Services Licence (AFSL) holder. You can verify their licence status on the ASIC Financial Advisers Register, which is free to search. The register shows what type of advice they are authorised to provide, their qualifications, and any disciplinary history. Never engage an adviser who is not on the register.

Understand How They Charge

Advisers use different fee models — fixed dollar fees for a SOA, percentage-based ongoing fees, or flat annual retainers. Ask for a clear explanation of all fees upfront, including initial advice costs, ongoing fees, and any product-level costs. Under FOFA reforms, commissions and conflicted remuneration are banned for retail clients, but some grandfathered arrangements may still exist. A good adviser will be transparent about how they are paid.

Ask About Their Advice Philosophy

Some advisers are independent (they can choose products from the whole market), while others are restricted (they can only recommend products from a limited list or affiliated providers). Both models can work, but the difference should be disclosed upfront. If an adviser can only recommend products from one or two providers, ask why and whether those products are the best fit for you.

Review Their Qualifications and Experience

Since the introduction of the FASEA education standards, all advisers must hold a relevant degree or equivalent qualification and pass an exam. They must also complete continuing professional development each year. Ask about their experience with clients in similar circumstances to yours — whether that is retirement planning, insurance, or investment advice.

Check Their Complaints History

The ASIC Register shows if an adviser has been banned or had conditions imposed on their licence. You can also ask whether any complaints have been made against them and how those were resolved. A small number of complaints is not necessarily a red flag, but a pattern of complaints about the same issue is a concern.

Initial Research

Start by identifying potential advisers. Ask friends and family for recommendations, search ASIC's Financial Advisers Register, or use professional body directories like the FAAA's Find an Adviser tool. Shortlist 2-3 advisers who appear to meet your needs.

Check each adviser's qualifications, experience, and disciplinary history on the register. Verify they hold a current AFSL or are an authorised representative. Check their areas of specialisation — some advisers specialise in retirement planning, others in SMSFs, insurance, or mortgage advice.

Interview Questions

When meeting potential advisers, ask: What are your qualifications and experience? What areas do you specialise in? How are you paid (fee-for-service, commission, asset-based)? What is the estimated cost of initial and ongoing advice? Do you offer independent (whole of market) or restricted advice?

Also ask: How often will we meet? Who will be my main point of contact? What happens if you leave the industry? Can you provide references from existing clients? A good adviser should answer these questions openly and clearly.

Making Your Decision

After meeting with potential advisers, compare: fee structures and total costs, areas of expertise and whether they match your needs, communication style and whether you feel comfortable, the level of service offered, and whether the adviser offers independent or restricted advice.

Choose the adviser who best meets your needs and with whom you feel comfortable. Do not feel pressured to decide immediately — take time to consider your options.

Frequently Asked Questions

Should I choose an independent or restricted adviser?
Independent advisers can recommend products from the whole market. Restricted advisers are aligned with specific product providers. Independent advice may offer more choice but often costs more. Choose based on your needs.

How many advisers should I interview?
At least two. Meeting multiple advisers helps you compare approaches, fees, and personal fit. Most advisers offer free initial consultations.

What qualifications should my adviser have?
At minimum: a relevant degree, FASEA exam pass, and 40 hours CPD per year. Specialist advisers may have additional certifications. Check the Financial Advisers Register.

Should I choose a local adviser?
Local advisers offer face-to-face meetings, which some clients prefer. However, many advisers offer video meetings. The quality of advice is more important than location.

Red Flags to Watch For

While most financial advisers in Australia are professional and competent, it pays to be aware of warning signs. Be cautious if an adviser pressures you to make an immediate decision, guarantees specific investment returns, is vague about how they are paid, or recommends switching super funds or insurance policies frequently (which may generate additional commissions or fees). Under FOFA laws, advisers must act in your best interests and prioritise your interests ahead of their own. If something feels off, trust your instincts and seek a second opinion.

Other red flags include: an adviser who cannot clearly explain their advice philosophy, one who recommends products from only one provider without adequate justification, or one who discourages you from reading the fine print. The ASIC Financial Advisers Register also shows disciplinary history. A single complaint may not be concerning, but a pattern of similar complaints about the same issue warrants caution. You can also check AFCA's website for information about complaints against specific licensees.

What to Expect in Your First Meeting

A good initial meeting with a potential adviser should cover: your financial situation and goals, the adviser's services and how they can help, a clear explanation of fees and costs, and what the ongoing relationship would look like. The adviser should listen more than they talk, ask detailed questions about your circumstances, and avoid making specific product recommendations until they have gathered full information. Most advisers offer the first meeting free of charge and without obligation.

Before the meeting, gather documents showing your current financial position: super statements, insurance policies, investment account statements, recent tax returns, and a summary of your income and expenses. This allows the adviser to give you a more accurate assessment of how they might help. After the meeting, take notes on what was discussed and compare your impressions across multiple advisers before making a decision.